Saved Help Save & Exit Submit Check my work Required information Forten Company,

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Saved Help Save & Exit Submit Check my work Required information Forten Company, a merchandiser, recently completed its calendar-year 2017 operations. For the year, () 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 and balance sheets follow FORTEN COMPANY comparative Balance Sheets December 31, 2017 and 2016 2017 2016 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 1iabilities Long-tern notes payable Total liabilities Equity Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings 67,900 85,500 83,890 293,656 62,625 263, 800 1330 2135 446,776 414,060 145,500 120,000 (42.625) (52,000 549,651 $482,060 65,141 $132,675 13,600,400 141,075 78,741 137,741 186,750 201,825 162,250 49,500 175,660 117,985 549,651 $482,060 Total 1iabilities and equity KPrev4 5 of 6 Next>

Explanation / Answer

Forten Company Spreadsheet for statement of cashflows For the year ended December 31, 2017 Analysis of changes December 31, 2017 Debit Credit December 31, 2016 Balance sheet-debit Cash 85500 17600 67900 Accounts receivable 62625 21265 83890 Inventory 263800 29856 293656 Prepaid expenses 2135 805 1330 Equipement 120000 108375 82875 145500 Balance sheet credit Accumulated depreciation 52000 42125 32750 42625 Accounts payable 132675 67534 65141 Short term notes payable 8400 5200 13600 Long term notes payable 60750 56125 54375 59000 Common stock 162250 24500 186750 Paid in capital, in excess of par, common stock 0 49500 49500 Retained earnings 117985 52500 110175 175660 Statement of cash flows Net Income 110175 Add : Depreciation 32750 Add : Loss on sale of equipment 17125 Operating cash flow before working capital changes 160050 Increase in Accounts Receivable -21265 Increase in Inventory -29856 Decrease in Prepaid Rent 805 Decrease in Accounts payable -67534 Cash from Operating Activities A 42200 Financing Activites Issuance of common stock 74000 Borrowal by signing short term notes payable 5200 Repayment of Long term notes -56125 Payment of cash dividends -52500 Cash flow from Financing Activites B -29425 Investing Activities sale of equipment 23625 Purchase of equipment -54000 Purchase of Land Cash flow from Investing Activites C -30375 Net cash flow from All activites A+B+C -17600 Add : Opening cash balance 85500 Ending Cash balance 67900 We appreciate the rating of our answers Thank You

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