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	$	34,709		$	63,500
Accounts receivable		67,225			52,625
Merchandise inventory		272,656			247,800
Prepaid expenses		1,260			1,675
Equipment		145,075			103,000
Accum. depreciationEquipment		(35,950)			(43,000)
Total assets	$	484,975		$	425,600
Liabilities and Equity
Accounts payable	$	59,775		$	108,650
Short-term notes payable		6,600			4,300
Long-term notes payable		36,525			34,500
Common stock, $5 par value		154,750			145,750
Paid-in capital in excess of par, common stock		27,000			0
Retained earnings		200,325			132,400
Total liabilities and equity	$	484,975		$	425,600

FORTEN COMPANY Income Statement For Year Ended December 31, 2013
Sales				$	592,500
Cost of goods sold					289,000
Gross profit					303,500
Operating expenses
Depreciation expense	$	18,300
Other expenses		140,250			158,550
Other gains (losses)
Loss on sale of equipment					(4,075)
Income before taxes					140,875
Income taxes expense					26,750
Net income				$	114,125

Additional Information on Year 2013 Transactions
a.	The loss on the cash sale of equipment was $4,075 (details in b).
b.	Sold equipment costing $43,675, with accumulated depreciation of $25,350, for $14,250 cash.
c.	Purchased equipment costing $85,750 by paying $43,000 cash and signing a long-term note payable for the balance.
d.	Borrowed $2,300 cash by signing a short-term note payable.
e.	Paid $40,725 cash to reduce the long-term notes payable.
f.	Issued 1,800 shares of common stock for $20 cash per share.
g.	Declared and paid cash dividends of $46,200.

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.) Cash flow from operating activities Net income Adjustments to reconcile net income to net cash provided by operations Cash flows from investing activities Cash flows from financing activities Net increase (decrease) in cash Cash balance at beginning of year Cash balance at end of year