Please do not give solution in image format thanku FORTEN COMPANYStatement of Cash FlowsFor Current Year Ended December 31Cash flows from operatingactivitiesCash received from customersCash paid for inventoryCash paid for operating expensesCash paid for income taxesX Answer is not complete.Net cash provided by operating activitiesCash flows from investing activitiesCash received from sale of equipmentCash paid for equipmentNet cash used in investing activitiesCash flows from financing activitiesNet cash used in financing activitiesNet increase (decrease) in cashCash balance at December 31. prior yearCash balance at December 31, current year29,62569$609(9029,625029,62529,625 [The following information applies to the questions displayed below.]Forten Company's current year Income statement, comparative balance sheets, and additionalInformation follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflectcash receipts from customers, (3) all purchases of Inventory are on credit, and (4) all debits to AccountsPayable reflect cash payments for Inventory.Sales:Cost of goods soldGross profitOperating expenses (excluding depreciation)Depreciation expenseOther gains (losses)Loss on sale of equipmentIncome before taxes:Income taxes expenseNet incomeAssetsCashFORTEN COMPANYIncome StatementFor Current Year Ended December 31Accounts receivableInventoryPrepaid expensesTotal current assetsEquipmentAccumulated depreciation-EquipmentTotal assetsLiabilities and EquityAccounts payableLong-term notes payableTotal liabilitiesEquityCommon stock, $5 par valueFORTEN COMPANYComparative Balance SheetsDecember 31$ 150,40038,750Paid-in capital in excess of par, common stockRetained earningsTotal liabilities and equity$ 672,500303,000369,500189, 158(23,125)157,22549,450$ 107,775Current Year Prior Year$76,90092,950302,6561,390473,896139,500(45,625)$ 567,771$ 71,14171,400142,541189,75064,500170,980$ 567,771$91,50068,625269,8002,255432,180126,000(55,000)$ 503,180$ 141,67576,350218,025168,2508116,905$ 503,180Additional Information on Current Year Transactionsa. The loss on the cash sale of equipment was $23,125 (detalls in b).b. Sold equipment costing $100,875, with accumulated depreciation of $48,125, for $29,625 cash.c. Purchased equipment costing $114,375 by paying $66,000 cash and signing a long-term notespayable for the balance.d. Paid $53,325 cash to reduce the long-term notes payable.e. Issued 4,300 shares of common stock for $20 cash per share.1. Declared and paid cash dividends of $53,700.

The cash flow statement is prepared to record the cash flow from various activities during the…

Income taxes expense Net income Assets Cash Accounts receivable Inventory Prepaid expenses. Total current assets FORTEN COMPANY Comparative Balance Sheets December 31 Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Long-term notes payable Total liabilities Equity Common stock, $5 par value 49,450 $ 107,775 Current Year Prior Year $ 76,900 92,950 302,656 1,390 473,896 139,500 (45,625) $ 567,771 $ 71,141 71,400 142,541 189,750 $ 91,500 68,625 269,800 2,255 432,180 126,000 (55,000) $ 503,180 $ 141,675 76,350 218,025 168, 250

Income taxes expense Net income Assets Cash Accounts receivable Inventory Prepaid expenses. Total current assets FORTEN COMPANY Comparative Balance Sheets December 31 Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Long-term notes payable Total liabilities Equity Common stock, $5 par value 49,450 $ 107,775 Current Year Prior Year $ 76,900 92,950 302,656 1,390 473,896 139,500 (45,625) $ 567,771 $ 71,141 71,400 142,541 189,750 $ 91,500 68,625 269,800 2,255 432,180 126,000 (55,000) $ 503,180 $ 141,675 76,350 218,025 168, 250

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 48CE

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The following selected information is taken from the financial statements of Arnn Company for its most recent year of operations: During the year, Arnn had net sales of 2.45 million. The cost of goods sold was 1.3 million. Required: Note: Round all answers to two decimal places. 1. Compute the current ratio. 2. Compute the quick or acid-test ratio. 3. Compute the accounts receivable turnover ratio. 4. Compute the accounts receivable turnover in days. 5. Compute the inventory turnover ratio. 6. Compute the inventory turnover in days.
Smoltz Company reported the following information for the current year: cost of goods sold, $252,500; increase in inventory, $21,700; and increase in accounts payable, $12,200. What is the amount of cash paid to suppliers that Smoltz would report on its statement of cash flows under the direct method? a. $218,600 c. $262,000 b. $243,000 d. $286,400
For each of the following transactions, state which special journal (Sales Journal, Cash Receipts Journal, Cash Disbursements Journal, Purchases Journal, or General Journal) and which subsidiary ledger (Accounts Receivable, Accounts Payable, neither) would be used in recording the transaction. A. Sold inventory for cash B. Issued common stock for cash C. Received and paid utility bill D. Bought office equipment on account E. Accrued interest on a loan at the end of the accounting period F. Paid a loan payment G. Bought inventory on account H. Paid employees I. Sold inventory on account J. Paid monthly insurance bill
Use the following excerpts from Jasper Companys financial statements to determine cash paid to suppliers for inventory in 2018.
Transactions related to revenue and cash receipts completed by Sterling Engineering Services during the period June 230, 2016, are as follows: Instructions 1. Insert the following balances in the general ledger as of June 1: 2. Insert the following balances in the accounts receivable subsidiary ledger as of June 1: 3. Prepare a single-column revenue journal (p. 40) and a cash receipts journal (p. 36). Use the following column headings for the cash receipts journal: Fees Earned Cr., Accounts Receivable Cr., and Cash Dr. The Fees Earned column is used to record cash fees. Insert a check mark () in the Post. Ref. column when recording cash fees. 4. Using the two special journals and the two-column general journal (p. 1), journalize the transactions for June. Post to the accounts receivable subsidiary ledger, and insert the balances at the points indicated in the narrative of transactions. Determine the balance in the customers account before recording a cash receipt. 5. Total each of the columns of the special journals, and post the individual entries and totals to the general ledger. Insert account balances after the last posting. 6. Determine that the sum of the customer accounts agrees with the accounts receivable controlling account in the general ledger. 7. Why would an automated system omit postings to a control account as performed in step 5 for Accounts Receivable?
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Given the following information, convert Cardinal Companys cost of goods sold from its income statement into payments to suppliers for its statement of cash flows.
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Use the following excerpts from Huckleberry Companys financial statements to determine cash paid to suppliers for inventory in 2018.
Financial data for Otto Company follow: a. Compute the ratio of cash to monthly cash expenses. b. Interpret the results computed in (a).
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