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 company's income statement and balance sheets follow.

FORTEN COMPANY Comparative Balance Sheets December 31, 2015 and 2014
	2015			2014
Assets
Cash	$	91,305		$	73,000
Accounts receivable		65,900			56,000
Inventory		275,500			252,500
Prepaid expenses		1,500			1,600
Total current assets		434,205			383,100
Equipment		158,740			108,000
Accum. depreciationEquipment		(36,500)			(46,000)
Total assets	$	556,445		$	445,100
Liabilities and Equity
Accounts payable	$	98,000		$	114,000
Short-term notes payable		11,000			7,000
Total current liabilities		109,000			121,000
Long-term notes payable		67,295			48,000
Total liabilities		176,295			169,000
Equity
Common stock, $5 par value		162,000			150,250
Paid-in capital in excess of par, common stock		35,250			0
Retained earnings		182,900			125,850
Total liabilities and equity	$	556,445		$	445,100

FORTEN COMPANY Income Statement For Year Ended December 31, 2015
Sales				$	583,500
Cost of goods sold					289,000
Gross profit					294,500
Operating expenses
Depreciation expense	$	20,000
Other expenses		132,800			152,800
Other gains (losses)
Loss on sale of equipment					(5,750)
Income before taxes					135,950
Income taxes expense					23,000
Net income				$	112,950

Additional Information on Year 2015 Transactions

a.	The loss on the cash sale of equipment was $5,750 (details in b).
b.	Sold equipment costing $47,805, with accumulated depreciation of $29,500, for $12,555 cash.
c.	Purchased equipment costing $98,545 by paying $25,000 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 $54,250 cash to reduce the long-term notes payable.
f.	Issued 2,350 shares of common stock for $20 cash per share.
g.	Declared and paid cash dividends of $55,900.

Required:

Prepare a complete statement of cash flows; report its operating activities according to the direct method. (Amounts to be deducted should be indicated with a minus sign.)

FORTEN COMPANY
Statement of Cash Flows
For Year Ended December 31, 2015
Cash flows from operating activities
Cash received from customers
Cash paid for inventory
Cash paid for income taxes
Cash paid for other expenses
Net cash provided by operating activities		$0
Cash flows from investing activities
Cash received from sale of equipment	12,555
Cash paid for equipment	(25,000)
Net cash used in investing activities		(12,445)
Cash flows from financing activities
Cash paid for dividends
Cash received from issuing stock	47,000
Cash paid on long-term note
Net cash used in financing activities		47,000
Net increase (decrease) in cash			$34,555
Cash balance at beginning of year
Cash balance at end of year			$34,555

CALCULATE EACH SECTION

Lansing Companys 2015 income statement and selected balance sheet data (for current assets and current liabilities) at December 31, 2014 and 2015, follow.

LANSING COMPANY Income Statement For Year Ended December 31, 2015
Sales revenue	$	62,200
Expenses
Cost of goods sold		21,000
Depreciation expense		4,500
Salaries expense		10,000
Rent expense		3,000
Insurance expense		1,700
Interest expense		1,800
Utilities expense		1,500
Net income	$	18,700

LANSING COMPANY Selected Balance Sheet Accounts
At December 31	2015			2014
Accounts receivable		$360			$371
Inventory		96			75
Accounts payable		123			130
Salaries payable		47			39
Utilities payable		13			10
Prepaid insurance		10			11
Prepaid rent		13			11

Required:

Prepare the cash flows from operating activities section only of the companys 2015 statement of cash flows using the direct method. (Amounts to be deducted should be indicated with a minus sign.)

LANSING COMPANY
Cash Flows from Operating ActivitiesDirect Method
For Year Ended December 31, 2015
Cash flows from operating activities
Cash receipts from customers	$62,211
Cash payments for rent
Cash payments for interest	(1,800)
Cash payments for utilities
Cash payments for insurance
Cash payments for salaries
Cash payments to suppliers
Net cash provided by operating activities	$60,411

CALCULATE EACH SECTION PLEASE