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. (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. FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year $ S $ 72,400 88,420 298,156 1,360 460,336 142,500 (44, 125) 558,711 88,500 65,625 266,800 2,195 423, 120 123,000 (53,500) 492,620 $ s Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment Total assets Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities Long-term notes payable Total liabilities Equity Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity $ $ S 137,175 9,000 68,141 14,500 82,641 57,500 140,141 146,175 63,750 209,925 185,250 60,000 173,320 558,711 165,250 0 117,445 492,620 $ $ $ 657,500 300,000 357,500 FORTEN COMPANY Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 35,750 other expenses 147, 400 Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net income 183,150 (20, 125) 154, 225 45,250 108,975 $ Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $20,125 (details in 6). b. Sold equipment costing $91,875, with accumulated depreciation of $45,125, for $26,625 cash. c. Purchased equipment costing $111,375 by paying $60,000 cash and signing a long-term note payable for the balance. d. Borrowed $5,500 cash by signing a short term note payable. e. Paid $57,625 cash to reduce the long-term notes payable. f. Issued 4,000 shares of common stock for $20 cash per share. g. Declared and paid cash dividends of $53,100. Required: Prepare a complete statement of cash flows using a spreadsheet using the indirect method (Enter all amounts as positive values.) FORTEN COMPANY Spreadsheet for Statement of Cash Flows For Current Year Ended December 31 Analysis of Changes December 31, Prior Year Debit Credit December 31, Current Year Balance sheet-debit Cash $ 88,500 $ 72,400 Accounts receivable 65.625 Inventory 266,800 Prepaid expenses 2,195 Equipment 123,000 $ 546,120 S 72,400 Balance sheet-credit Accumulated depreciationEquipment $ 53,500 Accounts payable 137,175 Short-term notes payable 9,000 Long-term notes payable 63,750 Common stock, $5 par value 5 165,250 Paid-in capital in excess of par value, common stock 0 Retained earnings 117,445 $ 546,120 $ 0 Statement of cash flows Operating activities Retained earnings 117,445 $ 546,120 Statement of cash flows Operating activities Investing activities Financing activities Non cash investing and financing activities Purchase of equipment financed by long-term note payable S 0 $ 0