Forten Company, a merchandiser, recently completed its calendar-year 2017 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) al 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, 2817 and 2816 2017 2016 Assets 78,900 86,910 296,656 87,500 64,625 Accounts receivable Inventory 265,800 2,175 Prepaid expenses Total current assets 455, 816 143,500 420,180 122,89e Equipment Accum. depreciation-Equipnent Total assets S 555,691 489,190 Liabilities and Equity ts payable Short-term notes payable Total current liabilities 67,141 135,675 8,899 14,29985 81,341 144E 144,475 62,750 Long-tern notes payable Total liabilities Equity Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings 58,800 139,341 287,225 190,758 164,256 51,580 174,1117,625 Total liabilities and equity 555,691 489,180 FORTEN COMPANY Income Statement For Year Ended December 31, 2017 Sales $652,589 299.00e Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses Other gains (losses) Loss on sale of equipment 353, 580 5 34,75 146,48 181,15e 19,125 Income before taxes 153,225 Income taxes expense 43,850 Net income 109,375 Additionel Information on Year 2017 Transactions o. The loss on the cash sale of equipment was $19,125 (details in b) b. Sold equipment costing $88,875, with accumulated depreciation of $44,125, for $25,625 cash. Purchased equipment costing $110,375 by paying $58,000 cash and signing a long-term note payable for the balance. d. Borrowed $5,400 cash by signing a short-term note payable e. Paid $57,125 cash to reduce the long-term notes payable. f. Issued 3,900 shares of common stock for $20 cash per share g. Declared and paid cash dividends of $52,900 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 Statement of Cash Flows For Year Ended December 31, 2017 Cash flows from operating activities 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