Forten Company, a merchandiser, recently completed its calendar-year 2013 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 companys balance sheets and income statement follow.

FORTEN COMPANY Comparative Balance Sheets December 31, 2013 and 2012
	2013		2012
Assets
Cash	$	52,779		$	65,500
Accounts receivable		70,025			54,625
Merchandise inventory		269,656			243,800
Prepaid expenses		1,340			1,775
Equipment		149,175			107,000
Accum. depreciationEquipment		(40,150)			(47,000)
Total assets	$	502,825		$	425,700
Liabilities and Equity
Accounts payable	$	59,375		$	109,250
Short-term notes payable		7,400			4,700
Long-term notes payable		34,325			36,500
Common stock, $5 par value		157,750			146,750
Paid-in capital in excess of par, common stock		33,000			0
Retained earnings		210,975			128,500
Total liabilities and equity	$	502,825		$	425,700

FORTEN COMPANY Income Statement For Year Ended December 31, 2013
Sales				$	602,500
Cost of goods sold					293,000
Gross profit					309,500
Operating expenses
Depreciation expense	$	18,700
Other expenses		128,600			147,300
Other gains (losses)
Loss on sale of equipment					(4,175)
Income before taxes					158,025
Income taxes expense					27,750
Net income				$	130,275

Additional Information on Year 2013 Transactions
a.	The loss on the cash sale of equipment was $4,175 (details in b).
b.	Sold equipment costing $44,175, with accumulated depreciation of $25,550, for $14,450 cash.
c.	Purchased equipment costing $86,350 by paying $47,000 cash and signing a long-term note payable for the balance.
d.	Borrowed $2,700 cash by signing a short-term note payable.
e.	Paid $41,525 cash to reduce the long-term notes payable.
f.	Issued 2,200 shares of common stock for $20 cash per share.
g.	Declared and paid cash dividends of $47,800.

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.)