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Forten Company, a merchandiser, recently completed its calendar-year 2013 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 companys balance sheets and income statement follow.

FORTEN COMPANY Comparative Balance Sheets December 31, 2013 and 2012
	2013			2012
Assets
Cash	$	49,600		$	73,000
Accounts receivable		65,840			52,000
Merchandise inventory		275,500			251,500
Prepaid expenses		1,250			1,600
Equipment		158,000			106,500
Accum. depreciationEquipment		(41,750)			(52,000)
Total assets	$	508,440		$	432,600
Liabilities and Equity
Accounts payable	$	63,790		$	111,000
Short-term notes payable		10,000			7,000
Long-term notes payable		65,000			48,000
Common stock, $5 par value		162,250			150,250
Paid-in capital in excess of par, common stock		36,000			0
Retained earnings		171,400			116,350
Total liabilities and equity	$	508,440		$	432,600

FORTEN COMPANY Income Statement For Year Ended December 31, 2013
Sales				$	585,000
Cost of goods sold					290,000
Gross profit					295,000
Operating expenses
Depreciation expense	$	20,000
Other expenses		133,200			153,200
Other gains (losses)
Loss on sale of equipment					(5,500)
Income before taxes					136,300
Income taxes expense					24,250
Net income				$	112,050

Additional Information on Year 2013 Transactions

a.	Net income was $112,050.
b.	Accounts receivable increased.
c.	Merchandise inventory increased.
d.	Prepaid expenses decreased.
e.	Accounts payable decreased.
f.	Depreciation expense was $20,000.
g.	Sold equipment costing $47,250, with accumulated depreciation of $30,250, for $11,500 cash. This yielded a loss of $5,500.
h.	Purchased equipment costing $98,750 by paying $35,000 cash and (i.) by signing a long-term note payable for the balance.
j.	Borrowed $3,000 cash by signing a short-term note payable.
k.	Paid $46,750 cash to reduce the long-term notes payable.
l.	Issued 2,400 shares of common stock for $20 cash per share.
m.	Declared and paid cash dividends of $57,000.

Required:

Prepare a complete statement of cash flows using a spreadsheet; report its operating activities using the indirect method. (Enter all amounts as positive values.) I have my chart set up with the following but it is teling me that most of the values are wrong. Please help!

FORTEN COMPANY Spreadsheet for Statement of Cash Flows For Year Ended December 31, 2013 Analysis of Changes December 31, 2012 Debit Credit December 31, 2013 Balance sheetdebit balance accounts Cash $73,000 $23,400 $49,600 Accounts receivable 52,000 13,840 65,840 Merchandise inventory 251,500 24,000 275,500 Prepaid expenses 1,600 350 1,250 Equipment 106,500 51,500 158,000 $484,600 $550,190 Balance sheetcredit balance accounts Accumulated depreciationEquipment $52,000 $10,250 $41,750 Accounts payable 111,000 47,210 63,790 Short-term notes payable 7,000 3,000 10,000 Long-term notes payable 48,000 17,000 65,000 Common stock, $5 par value 150,250 12,000 162,250 Paid-in capital in excess of par value, common stock 0 36,000 36,000 Retained earnings 116,350 55,050 171,400 $484,600 $550,190 Statement of cash flows Operating activities Net income 112,050 Increase in accounts receivable 13,840 Increase in merchandise inventory 24,000 Decrease in prepaid expenses 350 Decrease in accounts payable 47,210 Depreciation expense 50,250 Loss on sale of equipment 5,500 Investing activities Receipt from sale of equipment 47,250 Payment to purchase equipment 35,000 Financing activities Borrowed on short-term note 3,000 Payment on long-term note 46,750 Issued common stock for cash 48,000 Payments of cash dividends 57,000 Non cash investing and financing activities Purchase of equipment financed by long-term note payable 63,750 $241,490 $606,060

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