Question

00 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 Prepaid Expenses. The company's income statement and balance sheets follow. 15 points FORTEN COMPANY Comparative Balance Sheets December 31, 2017 and 2016 2017 2016 $ 57,400 73,320 283, 156 1,260 415, 136 152,500 (39,125) $528,511 $ 78,500 55,625 256,800 1,995 392,920 113,000 (48,500) $457, 420 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 $ 58,141 11,500 69,641 62,500 132,141 $122,175 7,000 129,175 53,750 182,925 172,750 42,500 181, 120 $528,511 155, 250 0 119,245 $ 457, 420

Answer 1

Please hit LIKE button if this helped. For any further explanation, please pu Cash Flow $ 112,975 Net Income Adjustment to Net income: Depreciation Expenses Loss on Sale of Equipment $ 25,750 $ 10,125 Increase in Receivable Increase in Inventory Decrease in Prepaid Decrease in Accounts Payable $ -17,695 $ -26,356 $ 735 $ -64,034 Net Cash flow from Operating Activities $ 41,500 Cash flow from Investing activities: Sale of Equipment Purchase of Investment Net Cash from Investing Activities $ 16,625 $ -40,000 $ -23,375 Cash flow from financing activities: Short term note payable Payment of Note Payable-Long Term Issue of Stock Payment of Dividend Net Cash from Financing Activities $ 4,500 $ -52,625 $ 60,000 $ -51,100 $ -39,225 Net Increase in Cash Add: Beginning Balance $ -21,100 $ 78,500 Ending Balance $ 57,400