Forten Company

Please see pdf file.

Forten Company, a merchandiser, recently completed its calendar-year 2008 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. Forten’s balance sheets and income statement follow:

Don't use plagiarized sources. Get Your Custom Essay on
Forten Company
From $10/Page
Order Essay

FORTEN COMPANY
Comparative Balance Sheets
December 31, 2008 and 2007
2008 2007
Assets
Cash $ 49,800 $ 73,500
Accounts receivable 65,810 50,625
Merchandise inventory 275,656 251,800
Prepaid expenses 1,250 1,875
Equipment 157,500 108,000
Accum. depreciation?Equipment (36,625) (46,000)
Total assets $513,391 $439,800
Liabilities and Equity
Accounts payable $ 53,141 $114,675
Short-term notes payable 10,000 6,000
Long-term notes payable 65,000 48,750
Common stock, $5 par value 162,750 150,250
Paid-in capital in excess of par, common stock 37,500 0
Retained earnings 185,000 120,125
Total liabilities and equity $513,391 $439,800

FORTEN COMPANY
Income Statement
For Year Ended December 31, 2008
Sales $582,500
Cost of goods sold 285,000
Gross profit 297,500
Operating expenses
Depreciation expense $ 20,750
Other expenses 132,400 153,150
Other gains (losses)
Loss on sale of equipment 5,125
Income before taxes $139,125
Income taxes expense 24,250
Net income $114,975

Additional Information on Year 2008 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.

Required:
Prepare a complete statement of cash flows; report its operating activities using the indirect method.

Solution Preview
Forten Company, a merchandiser, recently completed its calendar-year 2008 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. Forten’s balance sheets and income statement follow:

FORTEN COMPANY
Comparative Balance Sheets
December 31, 2008 and 2007
Increase Activity
2008 2007 (Decrease)
Assets
Cash $ 49,800 $ 73,500 -23,700
Accounts receivable 65,810 50,625 15,185 Operating
Merchandise Inventory 275,656 251,800 23,856 Operating
Prepaid expenses 1,250 1,875 -625 Operating
Equipment 157,500 108,000 49,500 Investing
Accum. Depreciation-Equipment (36,625) (46,000) 9,375 Operating
Total assets $513,391 $439,800

Liabilities and Equity
Accounts payable $ 53,141 $ 114,675 -61,534 Operating
Short-term notes payable 10,000 6,000 4,000 Financing
Long-term notes payable 65,000 48,750 16,250 Financing
Common stock, $5 par …

Solution Summary
This solution is comprised of a detailed explanation to prepare a complete statement of cash flows; report its operating activities using the indirect method.To continue with the answer check on mycoursewriter.com/

MyCourseWriter
Order NOW For A 35% Discount!
Pages (550 words)
Approximate price: -

Why Choose Us

Quality Homework Writing

Do you need to ace your test? We have qualified writers to assist you in writing 100% quality homework writing. Mycoursewriter offers students unique and personalized custom papers that help them in getting good grades. Our academic experts will assist you with your dissertation papers, thesis writing, research papers, term papers, and case study homework help. Our writers are experienced and have perfected the art of crafting the best essay writing papers regardless of your academic level. Order now and get our superb homework writing services.

Expert Academic Writers

A student needs professional assistance outside class time. Before hiring our writers, they undergo thorough tests and strict educational backgrounds. After passing a test, our writers undergo training to ensure they deliver expert professional papers to our customers. We ensure they meet the timely delivery of papers and follow our customers' provided instructions. Every writer is an ENL writer and is from the USA, Canada, UK, or Australia. Our experts approach papers effectively depending on their area of specialization.

Affordable Price Guarantees

Is the deal too good to be true? Mycoursewriter is the most affordable assignment help website on the market. We consider students' daily needs for academic help. Our paper costs are reasonably priced to approximately 90% of students around the globe. Our main aim is to ensure students achieve academic excellence, and we believe inconsiderable prices should not hinder students from getting quality homework writing help. In case of any dissatisfaction, we offer unlimited revisions and rewrites without extra charges.

Timely delivery of papers

Tight deadline? Is your paper due in the next few hours? Worry no more. Our writers are here for your rescue. Many college students find it hard to balance their social and academic life and get caught up with academic deadlines. Drafting your paper at the last minute does not allow you to conduct extensive research and craft the correct answers. We have expert writers ready to work on your assignment writing. Urgent writing services are the ultimate solutions you need. We guarantee you timely delivery of papers at your convenience and specified time delivery of the customer.

100% Original Tasks

The ultimate deal-breaker in achieving good grades is submitting imitative papers. Plagiarism is a breach of examination standards and has serious consequences. Students need to deliver papers written in their understanding by paraphrasing their research findings and relevant citations. Our expert's primary consideration is providing free plagiarized papers that meet the lecturers' requirements. Our editors will proofread your paper before delivery ad ensure your papers will not be substandard. We guarantee extreme originality, and in case of any customer concerns, we offer a plagiarism report.

All Round the clock Customer Support

Our website is user-friendly and super useful! Mycoursewriter is the most trusted online writing website always available to provide you with assignment writing services that you need. Our primary concern is meeting customer need specifications by our friendly customer support team that Is available all the time. Our website usability is self-learnable but in case of any problem, feel free to contact us directly through our website email: support@mycourserwiter.com. We have diligently satisfied thousands of students, and you can witness this on our sites' review page.

Try it now!

Calculate the price of your order

We'll send you the first draft for approval by at
Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Advantages of Using Our Assignment writing Services

Mycoursewriter welcomes you for superb essay writing services. We are a legit site offering help with your most challenging homework writing assignments at affordable prices. Your essay paper will be assigned to a professional writer who will craft the paper from scratch according to your provided instructions.

Essays

Essay Writing and Proofreading Services

Essay writing is a common assignment writing for most college students. It takes a lot of time to craft a complete perfect essay. Mycourserwiter offers the best essay writing and proofreading services for most college students. Your paper is assigned to an expert writer who does thorough research on fresh ideas and personalizes your essay paper according to your assignment writing guidelines. Our essays are entirely exceptional and undergo a strict procedure that includes papers free from plagiarism and thorough proofreading.

Admissions

Admission and Business Papers

Writing an admission paper is not every student's desire, and this should not hinder any student from earning an admission. Writing a perfect personal statement to earn a position in a dream school or job can be stressful. Personal statements should display a high level of confidence and uniqueness. Admission essays require you to have a vast knowledge of the current happenings in the world and knowhow of the business world. We have qualified writers with skills who will write your admission paper through comprehensive research. All you have to do is provide us with little details about yourself, instructions and our writers will craft a perfect paper for you.

Editing

Editing and Proofreading

Mycoursewriter offers you assignment writing services free from grammatical and formatting mistakes. An error-free paper is significant in scoring the desired maximum grades. We have a team of editors who will go through your paper after our expert writers have delivered their fully crafted papers. Our writers will cover all the aspects of your paper instructions, such as fonts, spacing, and educational formats. Our team of editors will check through your paper to make sure it meets the formatting style provided in the paper instructions. Under no circumstances will a poorly formatted paper will be forwarded to you as our team of editors will ensure careful proofreading.

Coursework

Technical Papers

Assignment writing is part of a learning process, and one may not have the knowledge to answer all questions correctly. This should not be a stress to you as we have qualified essay writing experts to help you. Our qualified writers are holders of PhDs, Degrees, and Masters in different areas of study and can handle any papers regardless of the complexity. Multiple assignments may be challenging to finish on time. Our skilled professional writers are here to assist you in crafting all the correct answers for your assignment. Stop stressing about your homework writing and place an order with us, and our expert writers will provide you with the best assignment help.