Question

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 recelpts from customers, (3) all purchases of invertory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Experises are paid in advance and are initally debited to Prepaid Expertses. The comparny's income statement and balance sheets follow

Answer 1

Cash flows from operating activities
net income					111,375
Adjustments to reconcile net income to net
cash provided by operations:
Depreciation expense					29,750
loss on sale of Equipment					14,125
increase in account receivable					-19735
increase in inventory					-28356
Decrease in prepaid expense					775
Decrease in accounts payable					-66034
net cash provided by operating activities						41,900
Cash from investing activities
cash from sale of Equipment					20,625
cash for purchase of Equipment					-48000
Cash used fro investing activities						-27,375
Cash from financing activities
Cash from short term notes payable					4,900
Cash paid for long term notes payable					-54,625
Cash from stock issue					68000
paid cash dividend					-51,900
Cash used for financing activity						-33,625
Net decrease in cash						-19,100
Cash at the beginning og the year						82500
Cash at year end						63,400