Problem 16-1A Indirect:Statement of cash flows LO A1, P1, P2, P3 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 $ 50,404 68,000 Cash Accounts receivable Merchandise inventory Prepaid expenses Equipment Accum depreciation-Equipment 57,125 265,906 238,800 1,900 154,300 112,000 45,400) (52,000) 73,525 1.440 Total assets $ 500,175 $425,825 Liabilities and Equity Accounts payable Short-term notes payable Long-term notes payable S 58,875 S 110,000 5,200 33.575 148,000 8,400 39,000 Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings 161.500 40,500 197.325 123,625 Total liabilities and equity S 500,175 $ 425,825 Sales For Yea Income COMPANY Cost of goods sold income Statement For Year Ended December 31, 2013 $615.000 298.000 317,000 160 200 Gross profit Operating expenses s 1 141.000 osses) on sale of equpment before taxes 152.500 29,000 5 123,500 MacBo