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 $ 652,500 Cost of goods sold 299,000 Gross profit 353,500 Operating expenses (excluding depreciation) $ 146,400 Depreciation expense 34,750 181,150 Other gains (losses) Loss on sale of equipment (19,125) Income before taxes 153,225 Income taxes expense 43,850 Net income $ 109,375 FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year Assets Cash $ 70,900 $ 87,500 Accounts receivable 86,910 64,625 Inventory 296,656 265,800 Prepaid expenses 1,350 2,175 Total current assets 455,816 420,100 Equipment 143,500 122,000 Accumulated depreciationEquipment (43,625) (53,000) Total assets $ 555,691 $ 489,100 Liabilities and Equity Accounts payable $ 67,141 $ 135,675 Long-term notes payable 72,200 71,550 Total liabilities 139,341 207,225 Equity Common stock, $5 par value 183,750 164,250 Paid-in capital in excess of par, common stock 58,500 0 Retained earnings 174,100 117,625 Total liabilities and equity $ 555,691 $ 489,100 Additional Information on Current Year Transactions The loss on the cash sale of equipment was $19,125 (details in b). Sold equipment costing $88,875, with accumulated depreciation of $44,125, for $25,625 cash. Purchased equipment costing $110,375 by paying $58,000 cash and signing a long-term notes payable for the balance. Paid $51,725 cash to reduce the long-term notes payable. Issued 3,900 shares of common stock for $20 cash per share. Declared and paid cash dividends of $52,900.

Required: 1. Prepare a complete statement of cash flows using the indirect method for the current year.

Required information