Help Save & Ex Forten Company, a merchandiser, recently completed its calendar-y
ID: 2431941 • Letter: H
Question
Help Save & Ex Forten Company, a merchandiser, recently completed its calendar-year 2018 operations. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses. The company's income statement, balance sheets, and additional information follow FORTEN COMPANY Comparative Balance Sheets December 31, 2018 and 2017 2018 2017 Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment Total assets Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities Long-term notes payable Total liabilities Equity 52,900 $ 75,5ee 52,625 278,656 253,800 68,810 1,270 401,636 155,500 (37,625)(47,808) 401,636995 383,920 110,800 519,511 $446,920 55,141 117,675 18,600 0 6,400 65,741:498 124,075 50,750 64,000 129,741 174,825 14 15 of 16 NextExplanation / Answer
Cash Flow Statement: Amount $ Cash from the operating activities: Net Income 114175 add: depreciation 22750 add: loss on sale of equip 7125 Less: increase in AR 52625-68810 -16185 Less: increase in Inv 253800-278656 -24856 add: decrease in Prep. Exp 1995-1270 725 less: decrease in AP 55141-117675 -62534 add: increase in STNP 10600-6400 4200 Net Cash from operating activities 45400 Cash from the investing activities: Sales of equip 13625 Purchase of equip -98375 Net cash outflow from investing activities -84750 Cash from the financing activities: Issue of notes 64000-50750 13250 issue of shares 2700*20 54000 Less: dividend paid -50500 Cash from the financing activities: 16750 total cash outflow of all activities -22600 Opening cash balance75500 75500 Cloisng cash balance 52900
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