2. 333 ponts Problem 12-4AA Indirect Cash flows spreadsheet LO PL P2, P3, P4 For
ID: 2515627 • Letter: 2
Question
2. 333 ponts Problem 12-4AA Indirect Cash flows spreadsheet LO PL P2, P3, P4 Forton Company a merchandiser, recenty completod its calondar yoar 2016 operations For tho year, (1) all salos are credit salos 12) all credts to Accounts Receivablo rofect cash rocoipts fom customers,(3 ail purchases of invontory are on credit, (4) all doies to Aecounts Payable nefioct cash payments for inveniony, and (5) Oher Expenses are paid in advance and are initaly debited to Peepaid Expenses The company's income statoment and balance shoets follow Comparative Balance Sheets December 31 40000 73,000 Prepaid expenses Liabilises and Equity 54 255 114,000 102750 150500 Common stock 5 par value Padin cagital in exces of par common slock otal labitios and equtyExplanation / Answer
FORTEN COMPANY Spreadsheet for Statement of Cash Flows For Year Ended December 31, 2016 December Analysis of Changes December 31.2016 312,015 Debit Credit Balance sheet-debits Cash $73,000 $49,600 Accounts receivable 50,000 (b) $15,830 65,830 Merchandise inventory 252,500 (c) $24,500 277,000 Prepaid expenses 1,700 (d) $200 1,500 Equipment 107500 (h) 98,750 (g) 47,250 159000 $484,700 $552,930 Balance sheet-credits Accum. depreciation-Equip $52,000 (g) 30,000 (f) 20,000 $42,000 Accounts payable 114,000 (e) 58,745 55,255 Short-term notes payable 6,000 (j) 4,000 10,000 Long-term notes payable 48,750 (k) 45,000 (i) 63,750 67,500 Common stock, $5 par value 150,500 (I) 12,250 162,750 Paid-in capital in excess of par value, common stock 0 (I) 36,750 36,750 Retained earnings 113450 (m) 51,000 (a) 116,225 178675 $484,700 $552,930 Statement of cash flows Operating activities Net income (a) 116,225 Increase in accts. receivable (b) 15,830 Increase in merch. inventory (c) 24,500 Decrease in prepaid expenses (d) 200 Decrease in accounts payable (e) 58,745 Depreciation expense (f) 20,000 Loss on sale of equipment (g) 5,625 Investing activities Receipt from sale of equipment (g) 11,500 Payment to purchase equipment (h) 35000 Financing activities Borrowed on short-term note (J) 4,000 (k) 45,000 Payment on long-term note Issued common stock for cash (2450*20) (i) 49,000 (m) 51,000 Payments of cash dividends Noncash investing and financing activities Purchase of equip. financed by long-term note payable (i) 63,750 (m) 63,750 594,250 594,250
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