Forten Company, a merchandiser, recently completed its calendar-year 2015 operations. For the year, (1) all sales arecreditsales, (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.

FORTEN COMPANY Comparative Balance Sheets December 31, 2015 and 2014
	2015		2014
Assets
Cash	$	66,814		$	69,000
Accountsreceivable		74,925			58,125
Inventory		264,406			236,800
Prepaid expenses		1,480			1,950
Totalcurrent assets		407,625			365,875
Equipment		156,350			114,000
Accum. depreciationEquipment		(47,500)			(54,000)
Total assets	$	516,475		$	425,875
Liabilities and Equity
Accounts payable	$	58,675		$	110,300
Short-term notes payable		8,800			5,400
Total current liabilities		67,475			115,700
Long-term notes payable		32,475			40,000
Total liabilities		99,950			155,700
Equity
Common stock, $5 par value		163,000			148,500
Paid-in capital in excess of par, common stock		43,500			0
Retained earnings		210,025			121,675
Total liabilities and equity	$	516,475		$	425,875

FORTEN COMPANY Income Statement For Year Ended December 31, 2015
Sales				$	620,000
Cost of goods sold					300,000
Gross profit					320,000
Operating expenses
Depreciation expense	$	19,400
Other expenses		127,800			147,200
Other gains (losses)
Loss on sale of equipment					(4,350)
Income before taxes					168,450
Income taxesexpense					29,500
Net income				$	138,950

AdditionalInformation on Year 2015 Transactions
a.	The loss on the cash sale of equipment was $4,350 (details inb).
b.	Sold equipment costing $45,050, with accumulated depreciation of $25,900, for $14,800 cash.
c.	Purchased equipment costing $87,400 by paying $52,000 cash and signing a long-term note payable for the balance.
d.	Borrowed $3,400 cash by signing a short-term note payable.
e.	Paid $42,925 cash to reduce the long-term notes payable.
f.	Issued 2,900 shares of common stock for $20 cash per share.
g.	Declared and paidcash dividendsof $50,600.

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.)