Question

Saved Help S Required information (The following information applies to the questions displayed below.) Forten Company's current year income statement, comparative balance sheets, and additional information follow. 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. Prior Year FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Assets Cash $ 51,400 Accounts receivable 67,310 Inventory 277,156 Prepaid expenses 1,300 Total current assets 397,166 Equipment 156,500 Accum. depreciation-Equipment (37,125) Total assets $516,541 Liabilities and Equity Accounts payable $ 54,141 Short-term notes payable 10,300 Total current liabilities 64,441 $ 74,500 51,625 252,800 2,025 380,950 109,000 (46,500) $443,450 $116, 175 6,200 122,375 Prev 1 of 1. Next e Address Address Desktop * Links BR

Answer 1

114575 21750 6125 -15685 -24356 -62034 -73475 Forten Company Statement of Cash Flows For the Year Ended December 31 Cash flows from Operating Activities Net Income Adjustments to reconcile net income to net cash flow from operating activities: Depreciation expense Loss on sale of equipment Changes in current operating assets and liabilities: Increase in accounts receivable Increase in inventory Decrease in prepaid expenses Decrease in accounts payable Net cash flow from Operating Activities Cash flows from Investing Activities Cash proceed from sale of equipment Cash paid for purchase of equipment Net cash flow used for Investing activities Cash flows from Financing Activities Cash borrowed through short-term notes payable Cash repaid to long-term notes payable Cash proceed from issuance of common stock Cash dividend paid Net Cash flow used for Financing Activities Net increase (decrease) in cash Cash balance at December 31, prior year Cash balance at December 31, current year 41100 12625 -32000 -19375 4100 -50625 52000 -50300 44825 -23100 74500 51400