1. 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.The loss on the cash sale of equipment was $18,125 (details in b).
2. Sold equipment costing $85,875, with accumulated depreciation of $43,125, for $24,625 cash.
3. Purchased equipment costing $109,375 by paying $56,000 cash and signing a long-term notes payable for the balance.
4. Paid $51,325 cash to reduce the long-term notes payable.
5. Issued 3,800 shares of common stock for $20 cash per share.
6. Declared and paid cash dividends of $52,700.

Prepare a statement of cash flows using the indirect method for the year ended June 30, 2021.

Income statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net income $647,500298,000349,500 $145,400 179,150 (18,125)152,22542,450$109,775 FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year 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 \begin{tabular}{rr} $69,400 & $86,500 \\ 85,400 & 63,625 \\ 295,156 & 264,800 \\ 1,340 & 2,155 \\ \hline 451,296 & 417,080 \\ 144,500 & 121,000 \\ (43,125) & (52,500) \\ \hline$552,671 & $485,580 \\ \hline \hline \end{tabular} Equity Common stock, \$5 par value Paid-in capital in excess of par, common stock $66,141$134,175 Retained earnings \begin{tabular}{rr} 72,400 & 70,350 \\ \hline 138,541 & 204,525 \end{tabular}