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 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 notes payable for the balance.

j. Paid $46,125 cash to reduce the long-term notes payable.

k. Issued 2,500 shares of common stock for $20 cash per share.

l. Declared and paid cash dividends of $50,100.