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Income Statement and Balance Sheets Assignment | Top Universities

9 Required information Use the following information for the Problems below. For Company, a merchandiser recently completed Its calendar-year 2017 operations. For the year, () 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 debts to Accounts Payable reflect cash payments for Inventory, and (5) Other Expenses are paid In advance and are initially debited to Prepaid Expenses.

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The company's income statement and balance sheets follow. 1.12 points eBook FORTEN COMPANY Print Comparative Balance Sheets December 31, 2817 and 2016 References 2017 2016 Assets 9e,5ee 67,625 268,8e0 Cash 75,4e0 91,440 301,156 Accounts receivable Inventory Prepaid expenses 1,380 2,235 Total current assets 469,376 140,se0 (45,125) 429,160 Equipment Accum. depreciation-Equipment 125, eee (54,500) Total assets 564,751 499,660 Liabilities and Equity Accounts payable 7e,141 140,175 Short-term notes payable 15,10e 9,400 Total current liabilities 149,575 85,241 Long-term notes payable Total 1iabilities 56.580 65,750 215,325 141,741 Equity Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings 196,750 167,25e 54,5ee 117,085 171,760 Total liabilities and equity 564,751 499,660 FORTEN COMPANY Income Statement For Year Ended December 31, 2017 Sales 667,5ee 302,eee Cost of goods sold Gross profit 365,5ee Operating expenses Depreciation expense Other expenses 37,750 149,400 187,150 Other gains (losses) Loss on sale of equipment (22,125) Income before taxes 156, 225 Income taxes expense 48,05e 108,175 Net income Additional Information on Year 2017 Transactions a. The loss on the cash sale of equipment was $22,125 (details in b) b. Sold equipment costing $97,875, with accumulated depreciation of $47,125, for $28,625 cash c. Purchased equipment costing $113,375 by paying $64,000 cash and signing a long-term note payable for the balance. d. Borrowed $5,700 cash by signing a short-term note payable. e. Paid $58,625 cash to reduce the long-term notes payable. f. Issued 4,200 shares of common stock for $20 cash per share. g.Declared and paid cash dividends of $53,500. Required: 1. Prepare a complete statement of cash flows; report Its operating activities using the indirect method (Amounts to should be indicated with a minus sign.) be deducted FORTEN COMPANY Statement of Cash Flows For Year Ended December 31, 2017 Cash flows from operating activities Net income 108.175 Adjustments to reconcile net income to net cash provided by operations: 108.175 Cash flows from investing activities 0 Cash flows from financing activities 108.175 90.500 198.575 Net increase (decrease) in cash Cash balance at beginning of year Cash balance at end of year. Get Accounting Homework Help Today

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