Forten Company, a merchandiser, recently completed its calendar-year 2015 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 income statement and balance sheets follow.

Additional Information on Year 2015 Transactions
a.	The loss on the cash sale of equipment was $4,400 (details in b).
b.	Sold equipment costing $45,300, with accumulated depreciation of $26,000, for $14,900 cash.
c.	Purchased equipment costing $87,700 by paying $54,000 cash and signing a long-term note payable for the balance.
d.	Borrowed $3,600 cash by signing a short-term note payable.
e.	Paid $43,325 cash to reduce the long-term notes payable.
f.	Issued 3,100 shares of common stock for $20 cash per share.
g.	Declared and paid cash dividends of $51,400.

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.)

FORTEN COMPANY Comparative Balance Sheets December 31, 2015 and 2014 2015 2014 Assets Cash Accounts receivable Inventory Prepaid expenses $ 68,474$ 70,000 59,125 234,800 2,000 76,325 262,906 1,520 Total current assets Equipment Accum. depreciation-Equipment 409,225 158,400 365,925 116,000 (49,600) (56,000) Total assets 518,025 $425,925 Liabilities and Equity Accounts payable Short-term notes payable $ 58,475 $110,600 5,600 9,200 Total current liabilities Long-term notes payable 67,675 31,375 116,200 41,000 157,200 Total liabilities Equity Common stock, $5 par value Paid-in capital in excess of par, common stoclk Retained earnings 99,050 164,500 46,500 207,975 149,000 0 119,725 Total liabilities and equity 518,025 $425,925