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. Prior Year FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Assets Cash $ 72,400 Accounts receivable 88,420 Inventory 298,156 Prepaid expenses 1,360 Total current assets 460,336 Equipment 142,500 Accum. depreciation-Equipment (44.125) Total assets $558,711 Liabilities and Equity Accounts payable $ 68,141 Short-term notes payable 14,500 Total current liabilities 82,641 Long-term notes payable 57,500 Total liabilities 140, 141 Equity Common stock, $5 par value 185,250 Paid in capital in excess of par, common stock 60,000 Retained earnings 173,320 Total liabilities and equity $558,711 $ 88,500 65,625 266,800 2,195 423, 120 123,000 (53,580) $492,620 $137,175 9,000 146, 175 63,750 209,925 165,250 117,445 $492,620 FORTEN COMPANY Income Statement For current Year Ended December 31 Sales $657,500 cost of goods sold 300,000 Gross profit 357500 Operating expenses Depreciation expense $ 35,750 Other expenses 147. 400 183,158 other gains (losses) Loss on sale of equipment (20.125) Income before taxes 154,225 Income taxes expense 45,250 Net income $108,975 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $20.125 (details in b). 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: 1. Prepare a complete statement of cash flows using the indirect method for the current year. (Amounts to be deducted should be indicated with a minus sign.) FOR TEN COMPANY Statement of Cash Flows For Current Year Ended December 31 Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operations. 0 Cash flows from investing activities 0 Cash flows from financing activities 0 0 $ Net increase (decrease) in cash Cash balance at December 31. prior year Cash balance at December 31, current year $ 0