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 $ 672,500 Cost of goods sold 303,000 Gross profit 369,500 Operating expenses (excluding depreciation) $ 150,400 Depreciation expense 38,750 189,150 Other gains (losses) Loss on sale of equipment (23,125) Income before taxes 157,225 Income taxes expense 49,450 Net income $ 107,775 FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year Assets Cash $ 76,900 $ 91,500 Accounts receivable 92,950 68,625 Inventory 302,656 269,800 Prepaid expenses 1,390 2,255 Total current assets 473,896 432,180 Equipment 139,500 126,000 Accumulated depreciationEquipment (45,625) (55,000) Total assets $ 567,771 $ 503,180 Liabilities and Equity Accounts payable $ 71,141 $ 141,675 Long term notes payable 71,400 76,350 Total liabilities 142,541 218,025 Equity Common stock, $5 par value 189,750 168,250 Paid in capital in excess of par, common stock 64,500 0 Retained earnings 170,980 116,905 Total liabilities and equity $ 567,771 $ 503,180 Additional Information on Current Year Transactions The loss on the cash sale of equipment was $23,125 (details in b ) Sold equipment costing $100,875, with accumulated depreciation of $48,125, for $29,625 cash Purchased equipment costing $114,375 by paying $66,000 cash and signing a long term notes payable for the balance Paid $53,325 cash to reduce the long term notes payable Issued 4,300 shares of common stock for $20 cash per share Declared and paid cash dividends of $53,700 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 )

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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

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		$ 672,500
Cost of goods sold		303,000
Gross profit		369,500
Operating expenses (excluding depreciation)	$ 150,400
Depreciation expense	38,750	189,150
Other gains (losses)
Loss on sale of equipment		(23,125)
Income before taxes		157,225
Income taxes expense		49,450
Net income		$ 107,775

FORTEN COMPANY
Comparative Balance Sheets
December 31
	Current Year	Prior Year
Assets
Cash	$ 76,900	$ 91,500
Accounts receivable	92,950	68,625
Inventory	302,656	269,800
Prepaid expenses	1,390	2,255
Total current assets	473,896	432,180
Equipment	139,500	126,000
Accumulated depreciationEquipment	(45,625)	(55,000)
Total assets	$ 567,771	$ 503,180
Liabilities and Equity
Accounts payable	$ 71,141	$ 141,675
Long-term notes payable	71,400	76,350
Total liabilities	142,541	218,025
Equity
Common stock, $5 par value	189,750	168,250
Paid-in capital in excess of par, common stock	64,500	0
Retained earnings	170,980	116,905
Total liabilities and equity	$ 567,771	$ 503,180

Additional Information on Current Year Transactions

The loss on the cash sale of equipment was $23,125 (details in b).
Sold equipment costing $100,875, with accumulated depreciation of $48,125, for $29,625 cash.
Purchased equipment costing $114,375 by paying $66,000 cash and signing a long-term notes payable for the balance.
Paid $53,325 cash to reduce the long-term notes payable.
Issued 4,300 shares of common stock for $20 cash per share.
Declared and paid cash dividends of $53,700.

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.)