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. FORTEN COMPANY Comparative Balance Sheets December 31, 2015 and 2014 2015 2014 Assets Cash $ 70,944 $ 72,000 Accounts receivable 79,125 61,125 Inventory 259,906 230,800 Prepaid expenses 1,600 2,100 Total current assets 411,575 366,025 Equipment 162,500 120,000 Accum. depreciationEquipment (53,800) (60,000) Total assets $ 520,275 $ 426,025 Liabilities and Equity Accounts payable $ 58,075 $ 111,200 Short-term notes payable 10,000 6,000 Total current liabilities 68,075 117,200 Long-term notes payable 24,175 43,000 Total liabilities 92,250 160,200 Equity Common stock, $5 par value 167,500 150,000 Paid-in capital in excess of par, common stock 52,500 0 Retained earnings 208,025 115,825 Total liabilities and equity $ 520,275 $ 426,025 FORTEN COMPANY Income Statement For Year Ended December 31, 2015 Sales $ 635,000 Cost of goods sold 306,000 Gross profit 329,000 Operating expenses Depreciation expense $ 20,000 Other expenses 128,300 148,300 Other gains (losses) Loss on sale of equipment (4,500) Income before taxes 176,200 Income taxes expense 31,000 Net income $ 145,200 Additional Information on Year 2015 Transactions a. The loss on the cash sale of equipment was $4,500 (details in b). b. Sold equipment costing $45,800, with accumulated depreciation of $26,200, for $15,100 cash. c. Purchased equipment costing $88,300 by paying $63,000 cash and signing a long-term note payable for the balance. d. Borrowed $4,000 cash by signing a short-term note payable. e. Paid $44,125 cash to reduce the long-term notes payable. f. Issued 3,500 shares of common stock for $20 cash per share. g. Declared and paid cash dividends of $53,000. 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.)