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		$ 582,500
Cost of goods sold		285,000
Gross profit		297,500
Operating expenses (excluding depreciation)	$ 132,400
Depreciation expense	20,750	153,150
Other gains (losses)
Loss on sale of equipment		(5,125)
Income before taxes		139,225
Income taxes expense		24,250
Net income		$ 114,975

FORTEN COMPANY
Comparative Balance Sheets
December 31
	Current Year	Prior Year
Assets
Cash	$ 49,800	$ 73,500
Accounts receivable	65,810	50,625
Inventory	275,656	251,800
Prepaid expenses	1,250	1,875
Total current assets	392,516	377,800
Equipment	157,500	108,000
Accumulated depreciationEquipment	(36,625)	(46,000)
Total assets	$ 513,391	$ 439,800
Liabilities and Equity
Accounts payable	$ 53,141	$ 114,675
Long-term notes payable	75,000	54,750
Total liabilities	128,141	169,425
Equity
Common stock, $5 par value	162,750	150,250
Paid-in capital in excess of par, common stock	37,500	0
Retained earnings	185,000	120,125
Total liabilities and equity	$ 513,391	$ 439,800

Additional Information on Current Year Transactions

1. The loss on the cash sale of equipment was $5,125 (details in b).
2. Sold equipment costing $46,875, with accumulated depreciation of $30,125, for $11,625 cash.
3. Purchased equipment costing $96,375 by paying $30,000 cash and signing a long-term notes payable for the balance.
4. Paid $46,125 cash to reduce the long-term notes payable.
5. Issued 2,500 shares of common stock for $20 cash per share.
6. Declared and paid cash dividends of $50,100.

Required: Prepare a complete statement of cash flows using a spreadsheet using the indirect method. (Enter all amounts as positive values.)

FORTEN COMPANY
Spreadsheet for Statement of Cash Flows
For Current Year Ended December 31
	December 31, Prior Year	Analysis of Changes		December 31, Current Year
		Debit	Credit
Balance sheetdebit
Cash	$73,500			$49,800
Accounts receivable	50,625
Inventory	251,800
Prepaid expenses	1,875
Equipment	108,000
	$485,800
Balance sheetcredit
Accumulated depreciationEquipment	$46,000
Accounts payable	114,675
Long-term notes payable	54,750
Common stock, $5 par value	150,250
Paid-in capital in excess of par value, common stock	0
Retained earnings	120,125
	$485,800
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