Forten Company's current year income statement, comparative balance sheets, and additional information follow. 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, and (4) all debits to Accounts Payable reflect cash payments for inventory. FORTEN COMPANY Income Statement For Current Year Ended December 31 Sales $ 662,500 Cost of goods sold 301,000 Gross profit Operating expenses (excluding depreciation) $ 148,400 Depreciation expense 361,500 36,750 185,150 Other gains (losses) Loss on sale of equipment Income before taxes (21,125) Income taxes expense Net income Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Long-term notes payable Total liabilities Equity 155,225 46,650 $ 108,575 FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year $ 73,900 89,930 299,656 1,370 464,856 141,500 (44,625) $ 561,731 $ 69,141 71,800 140,941 186,750 $ 89,500 66,625 267,800 2,215 426,140 124,000 (54,000) $ 496,140 $ 138,675 73,950 212,625 166,250 Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity 61,500 172,540 $ 561,731 0 117,265 $ 496,140 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $21,125 (details in b). b. Sold equipment costing $94,875, with accumulated depreciation of $46,125, for $27,625 cash. c. Purchased equipment costing $112,375 by paying $62,000 cash and signing a long-term notes payable for the balance. d. Paid $52,525 cash to reduce the long-term notes payable. e. Issued 4,100 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $53,300. Problem 12-3A (Algo) Indirect: Statement of cash flows LO A1, P2, P3 Required: 1. Prepare a complete statement of cash flows using the indirect method for the current year. Note: Amounts to be deducted should be indicated with a minus sign.