Question

Required information The following information applies to the questions displayed below.] Forten Company, a merchandiser, recently completed its calendar-year 2017 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 paid Expenses. The company s income statement and balance sheets follow FORTEN COMPANY Comparative Balance Sheets December 31, 2017 and 2016 2017 2015 64,900 se,870 298,656 1.31e 437.736 147, see (41.625 $ 543,611 $ 83, see 6e,625 261, 2,095 4es, eze 118,000 (51,000) $ 475020 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-tern notes payable Total liabilities Equity Common stock, 55 par valut Paid-in capital in excess of par, common stock Retained earnings total liabilities and equity $ 63,241 13, eee 76.141 se, eee 136,141 $129.675 See 13765 5375e 195425 16.250 182,750 47, see 177,220 $ 541,611 119.345 475,020

Answer 1

FORTEN COMPANY
Statement of Cash Flows
For Year Ended December 31, 2017
Cash Flows From Operating Activities
Net Income	$110,975
Adjustments To Reconcile Net Income To Net Cash Provided By Operations:
Depreciation Expense	30,750
Increase in Accounts Receivable	-20,245
Increase in Inventory	-28,856
Decrease in Prepaid Expense	785
Decrease in Accounts Payable	-66,534
Loss On Disposal Of Equipment	15,125
Net Cash Provided By Operating Activities		$42,000
Cash Flows From Investing Activities
Cash Paid For Equipment	-50,000
Cash Received From Sale Of Equipment	21,625
Net Cash Used In Investing Activities		-28,375
Cash Flows From Financing Activities:
Cash Borrowed On Short-Term Note	5,000
Cash Paid On Long-Term Note	-55,125
Cash Received From Issuing Stock	70,000
Cash Paid For Dividends	-52,100
Net Cash Used In Financing Activities		-32,225
Net Increase (Decrease) In Cash		($18,600)
Cash Balance At Beginning Of Year		83,500
Cash Balance At End Of Year		$64,900