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 Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Loss on sale of equipment $ 642,500 297,000 345,500 $ 144,400 32,750 177,150 (17,125) Income before taxes Income taxes expense Net income Assets Cash FORTEN COMPANY Comparative Balance Sheets December 31 Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable 151,225 41,050 $ 110,175 Current Year Prior Year $ 67,900 83,890 293,656 1,330 446,776 145,500 (42,625) $ 549,651 $ 65,141 72,600 $ 85,500 62,625 263,800 2,135 414,060 120,000 (52,000) $ 482,060 $132,675 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 137,741 69,150 201,825 180,750 162,250 55,500 175,660 117,985 $ 549,651 $ 482,060 a. The loss on the cash sale of equipment was $17,125 (details in b). b. Sold equipment costing $82,875, with accumulated depreciation of $42,125, for $23,625 cash. c. Purchased equipment costing $108,375 by paying $54,000 cash and signing a long-term notes payable for the balance d. Paid $50,925 cash to reduce the long-term notes payable. e. Issued 3,700 shares of common stock for $20 cash per share. f. 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. (Amounts to be deducted should be indicated with a minus sign.)