Question

Assets Cash Accounts receivable Inventory Prepaid expensers Total current assets Equipment Accum. depreciation-Equipment Total assets 67,900 85,500 62, 625 293,656 263,800 2,135 446,776414, 060 120,000 83,890 1,330 145,500 (42,625) (52,000) $549,651 $482,060 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 65,141 $132, 675 8,400 141,075 59,000 60,750 13, 600 78,741 7.741 201, 825 201,825 186,750 49,500 175,660 162,250 117,985 $549,651 $482,060 FORTEN COMPANY Income Statement For Year Ended December 31, 2017 Sales Cost of goods sold Gross profit Operating expenses $642,500 297,000 345,500 Depreciation expense Other expenses $ 32,750 144,400 177,150 Other gains (losses) (17,125) 151,225 41,050 Loss on sale of equipment Income before taxes Income taxes expense

Answer 1

Cash flow statement using direct method
FORTEN COMPANY
Statement of Cash Flows
For the Year ended December 31,2017
Cash flow from Operating activities
Cash received from customers	$621,235.00
Cash paid for inventory	-$394,390.00
Cash paid for other expenses	-$143,595.00
Cash paid for income taxes	-$41,050.00
Net cash available from Operating activities		$42,200.00
Cash flow from Investing activities
Sale of equipment	$23,625.00
Purchase of equipment	-$54,000.00
Net cash used For Investing activities		-$30,375.00
Cash flow from Financing activities
Issue of short term note payable	$5,200.00
Repayment of long term notes payable	-$56,125.00
Issue of common stock	$74,000.00
Dividend paid	-$52,500.00
Net Cash used for Financing activities		-$29,425.00
Net Cash surplus		-$17,600.00
Add : Cash balance 2016		$85,500.00
Cash balance 2017		$67,900.00
Working
Cash received from customers
Accounts receivables 2016	$62,625.00
Add : Sales	$642,500.00
Less : Accounts Receivables 2017	$83,890.00
Cash received from customers	$621,235.00
Cash paid for Inventory
Accounts payable 2016	$132,675.00
Add : Cost of goods sold	$297,000.00
Less : Accounts payable 2017	$65,141.00
Add : Inventory 2017	$293,656.00
Less : Inventory 2016	$263,800.00
Cash paid for Inventory	$394,390.00
Cash paid for other expense
Other expense as per income statement	$144,400.00
Add : Prepaid expense 2016	$1,330.00
Less : Prepaid expense 2017	$2,135.00
Cash paid for other expense	$143,595.00