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 | ||||||||||
Assets | |||||||||||
Cash | $ | 72,400 | $ | 88,500 | |||||||
Accounts receivable | 88,420 | 65,625 | |||||||||
Inventory | 298,156 | 266,800 | |||||||||
Prepaid expenses | 1,360 | 2,195 | |||||||||
Total current assets | 460,336 | 423,120 | |||||||||
Equipment | 142,500 | 123,000 | |||||||||
Accum. depreciation—Equipment | (44,125 | ) | (53,500 | ) | |||||||
Total assets | $ | 558,711 | $ | 492,620 | |||||||
Liabilities and Equity | |||||||||||
Accounts payable | $ | 68,141 | $ | 137,175 | |||||||
Short-term notes payable | 14,500 | 9,000 | |||||||||
Total current liabilities | 82,641 | 146,175 | |||||||||
Long-term notes payable | 57,500 | 63,750 | |||||||||
Total liabilities | 140,141 | 209,925 | |||||||||
Equity | |||||||||||
Common stock, $5 par value | 185,250 | 165,250 | |||||||||
Paid-in capital in excess of par, common stock | 60,000 | 0 | |||||||||
Retained earnings | 173,320 | 117,445 | |||||||||
Total liabilities and equity | $ | 558,711 | $ | 492,620 | |||||||
FORTEN COMPANY Income Statement For Current Year Ended December 31 |
|||||||
Sales | $ | 657,500 | |||||
Cost of goods sold | 300,000 | ||||||
Gross profit | 357,500 | ||||||
Operating expenses | |||||||
Depreciation expense | $ | 35,750 | |||||
Other expenses | 147,400 | 183,150 | |||||
Other gains (losses) | |||||||
Loss on sale of equipment | (20,125 | ) | |||||
Income before taxes | 154,225 | ||||||
Income taxes expense | 45,250 | ||||||
Net income | $ | 108,975 | |||||
Additional Information on Current Year Transactions
FORTEN COMPANY | ||
Statement of Cash Flows | ||
For Current Year Ended December 31 | ||
Cash flows from operating activities | ||
Net income | ||
Adjustments to reconcile net income to net cash provided by operations: | ||
$0 | ||
Cash flows from investing activities | ||
0 | ||
Cash flows from financing activities: | ||
0 | ||
Net increase (decrease) in cash | $0 | |
Cash balance at December 31, prior year | ||
Cash balance at December 31, current year | $0 |
Cash Flow Statement (Indirect Method) | ||
Particulars | Amount | Amount |
Net Income | $ 108,975.00 | |
Adjustments to reconcile net income to: | ||
Net cash provided by operating activities | ||
Depreciation | $ 35,750.00 | |
Loss on sale of Equipment | $ 20,125.00 | |
Increase in Accounts Receivable | $ (22,795.00) | |
Increase in Inventory | $ (31,356.00) | |
Decrease in Prepayments | $ 835.00 | |
Increase in Short term Notes Payable | $ 5,500.00 | |
Decrease in Accounts Payable | $ (69,034.00) | |
Net Cash Generated | $ (60,975.00) | |
Net cash provided by operating activities | (A) | $ 48,000.00 |
Cash Flows from Investing Activities | ||
Purchase of Equipment | $ (60,000.00) | |
Sale of Equipment | $ 26,625.00 | |
Net cash provided by investing activities | (B) | $ (33,375.00) |
Cash Flows from Financing Activities | ||
Dividend Paid | $ (53,100.00) | |
Reduction in Long term Notes Payable | $ (57,625.00) | |
Increase in Common Stock | $ 80,000.00 | |
Net cash provided by Financing activities | (C') | $ (30,725.00) |
Net increase/decrease in cash | (A+B+C') | $ (16,100.00) |
Add:Opening cash balance | $ 88,500.00 | |
Closing cash balance | $ 72,400.00 |
Forten Company's current year income statement, comparative balance sheets, and additional information follow. For the year,...
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 Assets Cash...
Forten Company's current year Income statement, comparative balance sheets, and additional Information follow. 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. FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year 79,988 95,970...
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 $ 49,800...
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 Assets Cash...
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 Assets Cash...
Connect Homework: Chapter 12 i 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. points Prior Year eBook Print FORTEN COMPANY Comparative...
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,Additional Information on Current Year Transactionsa. The loss on the cash sale...
FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year Assets Cash $ 72,400 $ 88,500 Accounts receivable 88,420 65,625 Inventory 298,156 266,800 Prepaid expenses 1,360 2,195 Total current assets 460,336 423,120 Equipment 142,500 123,000 Accum. depreciation—Equipment (44,125 ) (53,500 ) Total assets $ 558,711 $ 492,620 Liabilities and Equity Accounts payable $ 68,141 $ 137,175 Short-term notes payable 14,500 9,000 Total current liabilities 82,641 146,175 Long-term notes payable 57,500 63,750 Total liabilities 140,141 209,925 Equity Common stock, $5...
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.Additional Information on Current Year Transactionsa. The loss on the cash sale of equipment...
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.Additional Information on Current Year Transactionsa. The loss on the cash sale of equipment...