$622,500 293,000 329,500 FORTEN COMPANY Income Statement For Year Ended December 31, 2018 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 28,750 Other expenses 140,400 Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net income 169,150 (13,125) 147,225 35,450 $ 111,775 Additional Information on Year 2018 Transactions a. The loss on the cash sale of equipment was $13,125 (details in b). b. Sold equipment costing $70,875, with accumulated depreciation of $38,125, for $19,625 cash. c. Purchased equipment costing $104,375 by paying $46,000 cash and signing a long-term note payable for the balance d. Borrowed $4,800 cash by signing a short-term note payable. e. Paid $54,125 cash to reduce the long-term notes payable. f. Issued 3,300 shares of common stock for $20 cash per share. g. Declared and paid cash dividends of $51,700. Required: 1. Prepare a complete statement of cash flows; report its operating activities using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) Accounts receivable increase (19,225) 41,800 Net cash provided by operating activities Cash flows from investing activities Cash received from sale of equipment Cash paid for equipment Net cash used in investing activities Cash flows from financing activities: Cash borrowed on short-term note Cash received from issuing stock Cash paid for dividends $ 41,800 41,000 Net increase (decrease) in cash Cash balance at December 31, 2017 Cash balance at December 31, 2018 $ 41,800