Question

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Required information Use the following information for the Problems below. [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. FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year $ 52,900 68,810 278,656 1,270 401,636 155,500 (37,625) $ 519,511 $ 75,500 52,625 253,800 1,995 383,920 110,000 (47,000) $ 446,920 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 Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity $ 55,141 10,600 65,741 64,000 129,741 $ 117,675 6,400 124,075 50,750 174,825 152, 250 165,750 40,500 183,520 $ 519,511 119,845 $ 446,920

Answer 1

Answer:

FORTEN COMPANY
Spreadsheet for Statement of Cash Flows
For Current Years Ended December 31
		Statement of cash flows
		Operating Activities
		Net Income	114,175.00
		Depreciation Expenses	22,750.00
		Loss on sale of equipment	7,125.00
		Increase in accounts receivable	16,185.00
		Increase in inventory	24,856.00
		Decrease in prepaid expenses	725.00
		Decrease in accounts payable	62,534.00
				45,400.00
		Investing Activities
		Sale of equipment	13,625.00
		Payments to purchase of equipment	34,000.00
				20,375.00
		Financing Activities
		Issued common stock for cash	54,000.00
		Repayment of Long term note payable	51,125.00
		Payment of Cash Dividend	50,500.00
				47,625.00
		Non Cash investing and financing activities
		Purchase of equipment financed by long term note payable		64,375.00

Working Notes:

Particulars	Current Year	Prior Year	Changes
Accounts receivable	68,810.00	52,625.00	16,185.00
Inventory	278,656.00	253,800.00	24,856.00
Prepaid expenses	1,270.00	1,995.00	(725.00)
			-
Accounts payable	55,141.00	117,675.00	(62,534.00)
Short term not payable	10,600.00	6,400.00	4,200.00

Equipment
Particulars	Amount	Particulars	Amount
To Balance b/d	110,000.00	By cash sale 1st equipment	13,625.00
Cash	34,000.00	Loss on sale	7,125.00
Notes Payable	64,375.00	Accumulated depreciation 1st	32,125.00
		By Balance c/d	155,500.00
	208,375.00		208,375.00

Accumulated depreciation
Particulars	Amount	Particulars	Amount
To Equipment sale 1st	32,125.00	By Balance b/d	47,000.00
		Depreciation	22,750.00
To Balance c/d	37,625.00
	69,750.00		69,750.00

Short term payable
Particulars	Amount	Particulars	Amount
		By Balance b/d	6,400.00
To balance cd	10,600.00	Cash received	4,200.00
	10,600.00		10,600.00

Long term payable
Particulars	Amount	Particulars	Amount
To Cash BF	51,125.00	By Balance b/d	50,750.00
To balance c/d	64,000.00	Equipment	64,375.00
	115,125.00		115,125.00