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 5 662.500 Cost of goods sold 301.00 Gross profit 361,500 Operating expenses (excluding depreciation) $ 149,400 Depreciation expense 36,750 185,152 Other gains (losses) Loss on sale of equipment (21.125) Income before taxes 155.225 Income taxes expense 46.652 Net income $ 108,575 FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year $ 73,900 89.93e 299,656 1.378 464,856 141,500 (44,625 $ 561,731 $ 89,5 GE.625 267.000 2.215 426,142 124.ee (54.220) $ 496,142 Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-iquipment Total assets Liabilities and Equity Accounts payable Long-term notes payable Total liabilitics Equity Common stock, 35 par value Paid in capital in excess of par, common stock Retained earnings Total liabilities and equity $ 69,141 71.800 148.941 $ 138.675 73,950 212,625 186.75 61,50 172,540 $ 561,731 156.25e 8 117.265 5 496.142 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 sccumulated depreciation of 546,125, 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. Required: 1. Prepares complete statement of cash flows using the indirect method for the current year. (Amounts to be deducted should be Indicated with a minus sign.) FORTEN COMPANY Statement of Cash Flowa For Current Year Ended December 31 Cash flows from operating activities Adjustments to reconcile net income to nel cash provided by operations Income statement items not affecting cash Changes in current assets and current liabilities 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