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Forten Company, a merchandiser, recently completed its calendar-year 2018 operations. For the year, (1) all...

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Accounting

Forten Company, a merchandiser, recently completed its calendar-year 2018 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 income statement, balance sheets, and additional information follow.

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Additional Information on Year 2018 Transactions

a.The loss on the cash sale of equipment was $10,125 (details in b).

b.Sold equipment costing $61,875, with accumulated depreciation of $35,125, for $16,625 cash.

c.Purchased equipment costing $101,375 by paying $40,000 cash and signing a long-term note payable for the balance.

d.Borrowed $4,500 cash by signing a short-term note payable.

e.Paid $52,625 cash to reduce the long-term notes payable.

f.Issued 3,000 shares of common stock for $20 cash per share.

g.Declared and paid cash dividends of $51,100.

Required: 1. Prepare a complete statement of cash flows; report its operating activities using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)

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