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 $ $602,500$

Cost of goods sold $289,000$

Gross profit $313,500$

Operating expenses $($excluding depreciation$)$ $ $136,400$

Depreciation expense $24,750161,150$

Other gains $($losses$)$

Loss on sale of equipment $(9,125)$

Income before taxes $143,225$

Income taxes expense $29,850$

Net income $ $113,375$

FORTEN COMPANY

Comparative Balance Sheets

December $31$

Current Year Prior Year

Assets

Cash $ $55,900$ $ $77,500$

Accounts receivable $71,81054,625$

Inventory $281,656255,800$

Prepaid expenses $1,2501,975$

Total current assets $410,616389,900$

Equipment $153,500112,000$

Accumulated depreciation$$Equipment $(38,625)(48,000)$

Total assets $ $525,491$ $ $453,900$

Liabilities and Equity

Accounts payable $ $57,141$ $ $120,675$

Long$-$term notes payable $74,20059,550$

Total liabilities $131,341180,225$

Equity

Common stock, $$5$ par value $168,750154,250$

Paid$-$in capital in excess of par, common stock $43,5000$

Retained earnings $181,900119,425$

Total liabilities and equity $ $525,491$ $ $453,900$

Additional Information on Current Year Transactions

The loss on the cash sale of equipment was $$9,125($details in b$).$

Sold equipment costing $$58,875,$ with accumulated depreciation of $$34,125,$ for $$15,625$ cash.

Purchased equipment costing $$100,375$ by paying $$38,000$ cash and signing a long$-$term notes payable for the balance.

Paid $$47,725$ cash to reduce the long$-$term notes payable.

Issued $2,900$ shares of common stock for $$20$ cash per share.

Declared and paid cash dividends of $$50,900.$ 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.

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