$1.$

Required information

$[$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, and $(4)$ all debits to Accounts Payable reflect cash payments for inventory.

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 notes payable for the balance.

d$.$ Paid $$51,725$ cash to reduce the long$-$term notes payable.

e$.$ Issued $3,900$ shares of common stock for $$20$ cash per share.

f$.$ Declared and paid cash dividends of $$52,900.$

Required:

Prepare a complete statement of cash flows using the direct method.

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

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