FORTEN COMPANY Income Statement For Year Ended December 31, 2017 Sales $582,500 Cost of goods sold _2_8,5,M Gross profit 297,500 Operating expenses

Solve for Statement of Cash Flow

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.

Additional Information on Year 2017 Transactions

a. The loss on the cash sale of equipment was $5,125 (details in b).

b. Sold equipment costing $46,875, with accumulated depreciation of $30,125, for $11,625 cash.

c. Purchased equipment costing $96,375 by paying $30,000 cash and signing a long-term note payable for the balance.

d. Borrowed $4,000 cash by signing a short-term note payable.

e. Paid $50,125 cash to reduce the long-term notes payable.

f. Issued 2,500 shares of common stock for $20 cash per share.

g. Declared and paid cash dividends of $50,100.

Order the answer to view it

Assignment Solutions
Assignment Solutions