Refer to the information reported about Forten Company in Problem 16-3A.

Required
Prepare a complete statement of cash flows using a spreadsheet as in Exhibit 16A.1; report its operating activities using the indirect method. Identify the debits and credits in the Analysis of Changes columns with letters that correspond to the following list of transactions and events.
a. Net income was $114,975.
b. Accounts receivable increased.
c. Inventory increased.
d. Prepaid expenses decreased.
e. Accounts payable decreased.
f. Depreciation expense was $20,750.
g. Sold equipment costing $46,875, with accumulated depreciation of $30,125, for $11,625 cash. This yielded a loss of $5,125.
h. Purchased equipment costing $96,375 by paying $30,000 cash and (i.) by signing a long-term note payable for the balance.
j. Borrowed $4,000 cash by signing a short-term note payable.
k. Paid $50,125 cash to reduce the long-term notes payable.
l. Issued 2,500 shares of common stock for $20 cash per share.
m. Declared and paid cash dividends of $50,100.

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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