C 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 Comparative Balance Sheets December 31, 2017 and 2016 2017 2016 Assets Cash Accounts receivable Inventory 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 $ 66,400 82,380 292,156 1,328 442, 256 146,500 (42,125) $ 546,631 $ 84,500 61,625 262,800 2,115 411,840 119, eee (51,500) $ 478,540 $ 64,141 13,300 77,441 59,500 136,941 $ 131,175 8,200 139, 375 59,750 199,125 13,300 77,441 59,500 136,941 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 8, 2ee 139, 375 59,750 199,125 184,750 48,500 176,440 $ 546,631 161,250 e 118,165 $ 478,540 $ 637,500 296,000 341,500 FORTEN COMPANY Income Statement For Year Ended December 31, 2017 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 31,750 Other expenses 143,400 Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net income 175, 150 (16,125) 150,225 39,658 $ 110,575 Year 2017 Transactions a. The loss on the cash sale of equipment was $16,125 (details in ). b. Sold equipment costing $79,875, with accumulated depreciation of $41,125, for $22,625 cash. c. Purchased equipment costing $107,375 by paying $52,000 cash and signing a long-term note payable for the balance d. Borrowed $5,100 cash by signing a short-term note payable. e. Paid $55,625 cash to reduce the long-term notes payable. f. Issued 3,600 shares of common stock for $20 cash per share, g. Declared and paid cash dividends of $52,300 Required: 1. Prepare a complete statement of cash flows, report its operating activities using the indirect method (Amounts to be de should be indicated with a minus sign.)