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 $ 597,500 Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) 288,000 309,500 $ 135,400 23,750 159,150 Loss on sale of equipment (8,125) Income before taxes Income taxes expense Net income 142,225 28,450 $ 113,775 FORTEN COMPANY Comparative Balance Sheets December 31 6 Required information 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. Part 1 of 2 5.71 points Skipped FORTEN COMPANY Statement of Cash Flows For Current Year Ended December 31 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operations: Income statement items not affecting cash eBook Changes in current assets and current liabilities 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 Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity Additional Information on Current Year Transactions Current Year Prior Year $ 76,500 53,625 254,800 $ 54,400 70,310 280,156 1,280 406,146 386,930 2,005 Print References 154,500 (38,125) $ 522,521 $ 56,141 167,250 111,000 (47,500) $ 450,430 $ 119,175 58,350 177,525 74,400 130,541 42,000 153,250 119,655 $ 522,521 $ 450,430 182,730 a. The loss on the cash sale of equipment was $8,125 (details in b). b. Sold equipment costing $55,875, with accumulated depreciation of $33,125, for $14,625 cash. c. Purchased equipment costing $99,375 by paying $36,000 cash and signing a long-term notes payable for the balance. d. Paid $47,325 cash to reduce the long-term notes payable. e. Issued 2,800 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $50,700. Cash flows from investing activities Cash flows from financing activities: Net increase (decrease) in cash Cash balance at December 31, prior year Cash balance at December 31, current year