FORTEN COMPANY Income Statement For Current Year Ended December 31 Sales $ 582,500 Cost of goods sold 285,000 Gross profit 297,500 Operating expenses (excluding depreciation) $ 132,400 Depreciation expense 20,750 153,150 Other gains (losses) Loss on sale of equipment (5,125) Income before taxes 139,225 Income taxes expense 24,250 Net income $ 114,975 FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year Assets Cash $ 49,800 $ 73,500 Accounts receivable 65,810 50,625 Inventory 275,656 251,800 Prepaid expenses 1,250 1,875 Total current assets 392,516 377,800 Equipment 157,500 108,000 Accumulated depreciationEquipment (36,625) (46,000) Total assets $ 513,391 $ 439,800 Liabilities and Equity Accounts payable $ 53,141 $ 114,675 Long-term notes payable 75,000 54,750 Total liabilities 128,141 169,425 Equity Common stock, $5 par value 162,750 150,250 Paid-in capital in excess of par, common stock 37,500 0 Retained earnings 185,000 120,125 Total liabilities and equity $ 513,391 $ 439,800 Additional Information on Current Year Transactions The loss on the cash sale of equipment was $5,125 (details in b). Sold equipment costing $46,875, with accumulated depreciation of $30,125, for $11,625 cash. Purchased equipment costing $96,375 by paying $30,000 cash and signing a long-term notes payable for the balance. Paid $46,125 cash to reduce the long-term notes payable. Issued 2,500 shares of common stock for $20 cash per share. Declared and paid cash dividends of $50,100. Required: Prepare a complete statement of cash flows using a spreadsheet using the indirect method. Required. Prepare a complete statement of cash flow using a spreadsheet using the direct method.