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Forten Company's current year income statement, comparative balance sheets, and additional information follow. 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, and $(4)$ all debits to Accounts Payable reflect cash payments for inventory.

FORTEN COMPANY

Income Statement

For Current Year Ended December $31$

Sales $ $662,500$

Cost of goods sold $301,000$

Gross profit $361,500$

Operating expenses $($excluding depreciation$)$ $ $148,400$

Depreciation expense $36,750185,150$

Other gains $($losses$)$

Loss on sale of equipment $(21,125)$

Income before taxes $155,225$

Income taxes expense $46,650$

Net income $ $108,575$

FORTEN COMPANY

Comparative Balance Sheets

December $31$

Current Year Prior Year

Assets

Cash $ $73,900$ $ $89,500$

Accounts receivable $89,93066,625$

Inventory $299,656267,800$

Prepaid expenses $1,3702,215$

Total current assets $464,856426,140$

Equipment $141,500124,000$

Accumulated depreciation$$Equipment $(44,625)(54,000)$

Total assets $ $561,731$ $ $496,140$

Liabilities and Equity

Accounts payable $ $69,141$ $ $138,675$

Long$-$term notes payable $71,80073,950$

Total liabilities $140,941212,625$

Equity

Common stock, $$5$ par value $186,750166,250$

Paid$-$in capital in excess of par, common stock $61,5000$

Retained earnings $172,540117,265$

Total liabilities and equity $ $561,731$ $ $496,140$

Additional Information on Current Year Transactions

The loss on the cash sale of equipment was $$21,125($details in b$).$

Sold equipment costing $$94,875,$ with accumulated depreciation of $$46,125,$ for $$27,625$ cash.

Purchased equipment costing $$112,375$ by paying $$62,000$ cash and signing a long$-$term notes payable for the balance.

Paid $$52,525$ cash to reduce the long$-$term notes payable.

Issued $4,100$ shares of common stock for $$20$ cash per share.

Declared and paid cash dividends of $$53,300.$

Required:

$1.$ Prepare a complete statement of cash flows using the indirect method for the current year.

Note: Amounts to be deducted should be indicated with a minus sign.