Additional Information on Year 2017 Transactions a. The loss on the cash sale of equipment was $5,125 (details in b). b. Sold equipment costing $46.875, with accumulated depreciation of $30.125, for $11.625 cash. c. Purchased equipment costing S96.375 by paying S30.000 cash and signing a long-term note payable for the balance. d. Borrowed $4,000 cash by signing a short-term note payable .Paid $50.125 cash to reduce the long-term notes payable f. Issued 2,500 shares of common stock for $20 cash per share. g. Declared and paid cash dividends of $50,100. Required 1. Prepare a complete statement of cash flows; report its operating activities using the indivect method. Disclose any noncash investing and financing activities in a note. Forten Company, a merchandiser, recently completed its calendar-year 2017 operations. 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. The company's income statement and balance sheets follow FORTEN COMPANY Income Statement For Year Ended December 31, 2017 FORTEN COMPANY Comparative Balance Sheets December 31, 2017 and 2016 Sales Cost of goods sold Gross profit Operating expenses S582.500 .285.00 297,500 Assets Cash Accounts receivable Inventory S 49.800 S 73,500 65.810 50.625 275,656 251,800 1.2501.875 392.516 377800 157,500 108,000 -(36625) -(46.000) S513.391 $439,800 Depreciation expense 20,750 Other expenses 132.400 153,150 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 Other gains (losses) Loss on sale of equipment (5.125) Income before taxes Income taxes expense Net income 139.225 24.250 $114.975 S 53,141 $114,675 10.000 6.000 63,141 120,675 65.000 48.750 128,141 169.425 162.750 50.250 0 185.000 120.125 S513.391 $439.800 37.500