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		$ 642,500
Cost of goods sold		297,000
Gross profit		345,500
Operating expenses (excluding depreciation)	$ 144,400
Depreciation expense	32,750	177,150
Other gains (losses)
Loss on sale of equipment		(17,125)
Income before taxes		151,225
Income taxes expense		41,050
Net income		$ 110,175

FORTEN COMPANY
Comparative Balance Sheets
December 31
	Current Year	Prior Year
Assets
Cash	$ 67,900	$ 85,500
Accounts receivable	83,890	62,625
Inventory	293,656	263,800
Prepaid expenses	1,330	2,135
Total current assets	446,776	414,060
Equipment	145,500	120,000
Accumulated depreciationEquipment	(42,625)	(52,000)
Total assets	$ 549,651	$ 482,060
Liabilities and Equity
Accounts payable	$ 65,141	$ 132,675
Long-term notes payable	72,600	69,150
Total liabilities	137,741	201,825
Equity
Common stock, $5 par value	180,750	162,250
Paid-in capital in excess of par, common stock	55,500	0
Retained earnings	175,660	117,985
Total liabilities and equity	$ 549,651	$ 482,060

Additional Information on Current Year Transactions

1. The loss on the cash sale of equipment was $17,125 (details in b).
2. Sold equipment costing $82,875, with accumulated depreciation of $42,125, for $23,625 cash.
3. Purchased equipment costing $108,375 by paying $54,000 cash and signing a long-term notes payable for the balance.
4. Paid $50,925 cash to reduce the long-term notes payable.
5. Issued 3,700 shares of common stock for $20 cash per share.
6. Declared and paid cash dividends of $52,500.

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.