only the yellow lines need answers value 2.50 points Problem 16-3A Indirect: Sta

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only the yellow lines need answers

value 2.50 points Problem 16-3A Indirect: Statement of cash flows LO A1, P1, P2, P3 Forten Company, a merchandiser, recently completed its calendar.year 2015 operations. For the year(1) all salos are credit sales, (2) all credits to Accounts Receivable refiect cash receipts from customers s from customers, (3) all purchases of inventory are on credit, (4) all debits to Acoounts Payable reflect cash payments for inventory and (5) Other Expenses income statement and balance sheets follow. and (5) Otner Expenses are paid in advance and areintally debied to Prepaid Expenses. The company' are paid in advance and are initially debited to Prepaid Expenses. The company's FORTEN COMPANY Comparative Balance Sheets December 31, 2015 and 2014 2015 2014 Assets Cash S 49.800 73,500

Explanation / Answer

Cash flow Statement for the period ending Indirect Method Details Amt $ Cash Flow From Operating Activities Net Income            114,975 Adjustments to reconcile net income to net cash provided by operations Add Depreciation              20,750 Add : Capital Loss                 5,125 Increased Accounts Receivable            (15,185) Increased Inventory            (23,856) Decreased Prepaid Expenses                    625 Decreased Accounts Payable            (61,534) Increased ST Note payable                 4,000 Income Tax Payable Total Cash Flow From Operating Activities              44,900 Cash Flow From Investing Activities Cash Inflow from sales of assets              11,625 Cash outflow from purchase of assets            (30,000) Total Cash Flow From Investing Activities            (18,375) Cash Flow From Financing Activities Cash received from issue of Common stock              50,000 Cash paid LT Note payable            (50,125) Cash Paid for Dividend Payment            (50,100) Cash paid for stock repurchase TotalCash Flow From Financing Activities            (50,225) Total Cash Flow from Operating. Investing and Financing Activities            (23,700) Intial Cash Balance              73,500 Net Effect of Cash Flow during the period            (23,700) Closing Cash Balance              49,800

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