RECOMMENDED!!ACCT 2301-Forten Company, a merchandiser, recently completed

  

Use the following information for the Problems 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.FORTEN COMPANYComparative Balance SheetsDecember 31, 2017 and 20162017 2016Assets Cash $ 51,400 $74,500Accounts receivable 67,310 51,625 Inventory 277,156 252,800 Prepaid expenses 1,300 2,025 Total current assets 397,166 380,950Equipment 156,500 109,000Accum. depreciation—Equipment (37,125) (46,500)Total assets $516,541 $443,450Liabilities and Equity Accounts payable $54,141 $116,175Short-term notes payable 10,300 6,200Total current liabilities 64,441 122,375Long-term notes payable 64,500 49,750Total liabilities 128,941 172,125 Equity Common stock, $5 par value 164,750 151,250Paid-in capital in excess of par, common stock 38,500 0Retained earnings 184,350 120,075Total liabilities and equity $516,541 $443,450————————————————————————————————————FORTEN COMPANYIncome StatementFor Year Ended December 31, 2017Sales $ 587,500 Cost of goods sold 286,000 Gross profit 301,500 Operating expenses Depreciation expense $ 21,750 Other expenses 133,400 155,150 Other gains (losses) Loss on sale of equipment (6,125 )Income before taxes 140,225 Income taxes expense 25,650 Net income $ 114,575 —————————————————————————————————————-Additional Information on Year 2017 TransactionsThe loss on the cash sale of equipment was $6,125 (details in b).Sold equipment costing $49,875, with accumulated depreciation of $31,125, for $12,625 cash.Purchased equipment costing $97,375 by paying $32,000 cash and signing a long-term note payable for the balance.Borrowed $4,100 cash by signing a short-term note payable.Paid $50,625 cash to reduce the long-term notes payable.Issued 2,600 shares of common stock for $20 cash per share.Declared and paid cash dividends of $50,300.———————————————————————————————————–Required:complete statement of cash flows; report its operating activities according to thedirect method.(Amounts to be deducted should be indicated with a minus sign.)FORTEN COMPANYStatement of Cash FlowsFor Year Ended December 31, 2017Cash flows from operating activities$0Cash flows from investing activities0Cash flows from financing activities0Net increase (decrease) in cash$0Net increase (decrease) in cashCash balance at beginning of yearCash balance at end of year$0*all options to inputCash borrowed on short-term noteCash paid for dividendsCash paid for equipmentCash paid for income taxesCash paid for inventoryCash paid for other expensesCash paid on long-term noteCash received from customersCash received from issuing stockCash received from sale of equipmentDecrease in accounts payableDecrease in accounts receivableDecrease in merchandise inventoryDecrease in prepaid expensesDepreciation expenseIncrease in accounts payableIncrease in accounts receivableIncrease in merchandise inventoryIncrease in prepaid expensesLoss on sale of equipmentNet incomeNet cash provided by financing activitiesNet cash provided by investing activitiesNet cash provided by operating activitiesNet cash used in financing activities