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

Required Information Use the following information for the Problems below. [The following information applies to the questions displayed below.] 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. (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. FORTEN COMPANY Comparative Balance Sheets December 31 Current Year $ 70, 980 86,910 296,656 1,350 455,816 143,500 (43,625) $ 555,691 Prior Year $ 87,500 64,625 265, 880 2,175 420,180 122,880 (53,000) $ 489, 180 Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment 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, common stock Retained earnings Total liabilities and equity $ 67,141 14,200 81,341 58,888 139,341 $ 135,675 8,888 144,475 62,750 207,225 164,250 183,750 58,500 174, 180 $ 555,691 117,625 $ 489, 100 $ 652, 5ee 299,000 353,500 FORTEN COMPANY Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 34,750 Other expenses 146,480 Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net income 181, 150 (19,125) 153, 225 43,850 $ 109, 375 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $19,125 (details in b). b. Sold equipment costing $88,875, with accumulated depreciation of $44.125. for $25,625 cash. c. Purchased equipment costing $110.375 by paying $58.000 cash and signing a long-term note payable for the balance. d. Borrowed $5.400 cash by signing a short-term note payable. e. Paid $57.125 cash to reduce the long-term notes payable. f. Issued 3.900 shares of common stock for $20 cash per share. g. Declared and paid cash dividends of $52.900