Forten Company's current year Income statement, comparative balance sheets, and additional Information follow. For 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. $ 672,500 303,000 369, see FORTEN COMPANY Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) $ 150,400 Depreciation expense 38,750 Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net income 189, 150 (23, 125) 157, 225 49,450 $ 107,775 FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year $ 76,989 92,950 302,656 1,390 473,896 139,500 (45,625) $ 567,771 $ 91,500 68,625 269,800 2,255 432,180 126, eee (55,000) $ 583, 180 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 Equity Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity $ 71,141 71,488 142,541 $ 141,675 76, 350 218,025 168,250 189,758 64,5ee 170,988 $ 567,771 116,905 $ 503,180 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $23,125 (details in b). b. Sold equipment costing $100,875, with accumulated depreciation of $48,125, for $29,625 cash. c. Purchased equipment costing $114,375 by paying $66,000 cash and signing a long-term notes payable for the balance. d. Pald $53,325 cash to reduce the long-term notes payable. e. Issued 4,300 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $53,700. Required: Prepare a complete statement of cash flows using a spreadsheet using the Indirect method. (Enter all amounts as positive values.) Answer is not complete. FORTEN COMPANY Statement of Cash Flows For Current Year Ended December 31 Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operations Income statement items not affecting cash Depreciation expense $ 107,775 38,750 Changes in current assets and current liabilities $ 148,525 Cash flows from investing activities 0 Cash flows from financing activities: 0 $ 148,525 Net increase (decrease) in cash Cash balance at December 31, prior year Cash balance at December 31, current year $ 148,525 FORTEN COMPANY Spreadsheet for Statement of Cash Flows For Current Year Ended December 31 Analysis of Changes December 31, Prior Year Debit Credit December 31, Current Year $ S 78,900 Balance sheet-debit Cash Accounts receivable Inventory Prepaid expenses Equipment 91,500 68,625 289,800 2.255 126,000 558,180 $ $ 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 55,000 141,6751 78,350 168,250 0 116,905 558,180 $ Statement of cash flows Operating activities Investing activities Financing activities Non cash investing and financing activities Purchase of equipment financed by long-term notes payable