A.The loss on the cash sale of equipment was $22,125 (details in b).

B. Sold equipment costing $97,875, with accumulated depreciation of $47,125, for $28,625 cash.

C. Purchased equipment costing $113,375 by paying $64,000 cash and signing a long-term note payable for the balance.

D. Borrowed $5,700 cash by signing a short-term note payable.

E. Paid $58,625 cash to reduce the long-term notes payable.

F. Issued 4,200 shares of common stock for $20 cash per share.

G. Declared and paid cash dividends of $53,500.

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.)

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Required information The following inforrmation applies to the questions displayed below.) Forten Company, a merchandiser, recently completed its calendar-year 2018 operations. For the year, (1) all sales are credit sales, (2) al 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, balance sheets, and additional information follow. FORTEN COMPANY Compa ative Balance Sheet December 31, 2018 and 2017 2018 2017 $ 75,400 90,500 67,625 268, 800 2,235 Accounts receivable Inventory Prepaid expenses Zotal current assets Equipnent Accum. depreciation Equipment Zotal assets 91,440 301,156 1,380 469,376 140,500 125,000 54,500 $564,751 $499,660 (45,125) Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities Long-term notes payable Zotal 1iabilities Equity common tock, $5 par value Paid-in capital in excess of par, comnon atock $ 70,141 140,175 15,100 9,400 149,575 6,500 65,750 215,325 141,741 196,750 63,000 175, 750 163, 260 108,585 $564,751 $499,660 Zotal liabilities and equity FORTEN COMPANY Income Statenent For Year Ended December 31, 2018 Salea Cost of goods sold Gross profit Operating expenses $667,500 302,000 365,500 Depreciation expense $ 37,750 149,400 187,150 Other expenses other gains (losses) Loss on sale of equipment Incone before taxes Income taxes expense Net income 22,125 156, 225 48,050 $108,175