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 $ 617,500 Cost of goods sold 292,000 Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) 325,500 $ 139,400 27,750 167,150 Loss on sale of equipment Income before taxes (12,125) Income taxes expense Net income Assets Cash Accounts receivable 146,225 34,050 $ 112,175 FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year $ 60,400 76,340 286,156 $ 80,500 57,625 258,800 1,280 2,035 424,176 398,960 150,500 115,000 (40,125) (49,500) $ 534,551 $ 464,460 $ 60,141 73,600 $ 125,175 63,150 133,741 Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable 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 188,325 173,250 157,250 48,000 0 179,560 118,885 $ 534,551 $ 464,460 a. The loss on the cash sale of equipment was $12,125 (details in b). b. Sold equipment costing $67,875, with accumulated depreciation of $37,125, for $18,625 cash. c. Purchased equipment costing $103,375 by paying $44,000 cash and signing a long-term notes payable for the balance. d. Paid $48,925 cash to reduce the long-term notes payable. e. Issued 3,200 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $51,500. 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. Cash flows from operating activities FORTEN COMPANY Statement of Cash Flows For Current Year Ended December 31 Adjustments to reconcile net income to net 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 $ 0 0 $ 0 $ Required: Prepare a complete statement of cash flows using a spreadsheet using the indirect method. Note: Enter all amounts as positive values Balance sheet-debit Cash Accounts receivable Inventory Prepaid expenses Equipment FORTEN COMPANY Spreadsheet for Statement of Cash Flows For Current Year Ended December 31 December 31, Prior Year Balance sheet-credit Accumulated depreciation Equipment Accounts payable Long-term notes payable Common stock. $5 par value Paid-in capital in excess of par value, common stock Retained earnings Statement of cash flows. Operating activities Investing activities Financing activities Non cash investing and financing activities Analysis of Changes December 31, Debit Credit Current Year 80,500 5 60,400 57,825 258.800 2,035 115,000 S 513,960 S 60,400 S 49,500 125,175 63,150 157,250 0 118,885 $ 513,960 $ Purchase of equipment financed by long-term notes payable $ 0 $ 0