Problem 12-2AA Indirect: Cash flows spreadsheet LO P1, P2, P3, P4
Forten Company, a merchandiser, recently completed its calendar-year 2013 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 balance sheets and income statement follow.
FORTEN COMPANY Comparative Balance Sheets December 31, 2013 and 2012
2013 2012
Assets
Cash $ 49,200 $ 73,000
Accounts receivable 65,890 57,000
Merchandise inventory 276,500 253,000
Prepaid expenses 1,250 1,900
Equipment 158,000 106,500
Accum. depreciation—Equipment (36,500) (46,000)
Total assets $ 514,340 $ 445,400