Forten Company, a reseller, recently completed its operations for the 2015 calendar year. 

For the year, 

(1) all sales are on credit, 

(2) all credits in Accounts Receivable reflect cash inflows from customers, 

(3) all inventory purchases are on credit, 

(4) all payables, inventory, and 

(5) Other Expenses in Accounts Payable are prepaid, and is initially debited to Prepaid Expenses

The company 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	12,000
Accum. depreciation-Equipment	(53,800)	(60,000)
Total assets	$520,275	$426,025
Liabilities and Equity
Accounts payable	$58,075	111, 200
Short-term notes payable	68,075	6,000
Total current liabilities	63,141	120,675
Long-term notes payable	65,000	117,200
Total liabilities	382432	355075
Equity
Common stock, $5 par value	167,500	150,000
Paid-in capital in excess of par, nominal 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		$635,0006
Cost of goods sold		100, 300
Gross croft		329,000
Operating expenses
Depreciation expense	$20,000
Other expenses	128,300	148,300
Others gains (losses)
Loss on sale of equipment		(4,500)
Income before taxes		176,200
Income taxes expense		31,000
Net		$145,200

Additional Information on 2015

 Transactions 

A. Loss from cash sale of equipment was $4,500 (details in b).

 B. Sold equipment costing $45,800 for $15,100 in cash with accumulated depreciation of $26,200.

 C. He purchased equipment that cost $88,300 by paying $63,000 in cash and signing a long-term promissory note payable for the balance. 

D. Borrowed $4,000 in cash by signing a short-term promissory note payable. 

E. He paid $44,125 in cash to reduce long-term securities payable. 

F. Issued 3,500 common shares for $20 per share in cash. 

G. declared and paid $53,000 cash dividends. 

Required: 

1. Prepare a complete cash flow statement; to report business activities using the indirect method.