15 00 8 points 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. FORTEN COMPANY Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Loss on sale of equipment $ 602,500 289,000 313,500 $ 136,400 24,750 161,150 (9,125) Income before taxes Income taxes expense Net income Assets Cash FORTEN COMPANY Comparative Balance Sheets December 31 Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity 143,225 29,850 $ 113,375 Current Year Prior Year $ 55,900 71,810 281,656 1,250 410,616 153,500 (38,625) $ 525,491 $ 57,141 74,200 $ 77,500 54,625 255,800 1,975 389,900 112,000 (48,000) $ 453,900 $ 120,675 59,550 180,225 Accounts payable 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 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $9,125 (details in b). 131,341 168,750 154,250 43,500 181,900 119,425 $ 525,491 $ 453,900 b. Sold equipment costing $58,875, with accumulated depreciation of $34,125, for $15,625 cash. c. Purchased equipment costing $100,375 by paying $38,000 cash and signing a long-term notes payable for the balance. d. Paid $47,725 cash to reduce the long-term notes payable. e. Issued 2,900 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $50,900. Required: 1. Prepare a complete statement of cash flows using the indirect method for the current year. (Amounts to be deducted should be indicated with a minus sign.)