Refer to Forten Company's financial statements and related information in Problem 16-3A.

Required
Prepare a complete statement of cash flows; report its operating activities according to the direct method. Disclose any noncash investing and financing activities in a note.

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FORTEN COMPANY Comparatlve Balance Sheets December 31, 2017 and 2016 2017 2016 Assets Accounts receivable Inventory Prepaid expenses Total current assets $49,800 73,500 50,625 275.656 251,800 2501.875 65.810 1,875 392,516 377,800 108,000 (36,625) (46,000) $513,391 $439,800 157,500 Accum. depreciation-Equipment Total assets Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities. Long-term notes payable Total liabilities Equity Common stock, $5 par value Paid-in capital in excess of par, 53,141 $114,675 6,000 120,675 65,000 48,750 169.425 10,000 63,141 128,141 162,750 50,250 common stock. Retained earnings Total liabilities and equity 37,500 185,000 20,125 $513,391 $439,800 FORTEN COMPANY Income Statement For Year Ended December 31, 2017 Sales Cost of goods sold Gross profit Operating expenses $582,500 285,000 297,500 Depreciation expense $ 20,750 Other expenses Other gains (losses) . 132,400 153,150 Loss on sale of equipment. Income before taxes. Income taxes expense Net income (5,125) 139,225 24,250 $114,975