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, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses. FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year Assets Cash $ 63,400 $ 82,500 Accounts receivable 79,360 59,625 Inventory 289, 156 260, 800 Prepaid expenses 1,300 2,075 Total current assets 433,216 405,000 Equipment 148,500 117,000 Accum. depreciation-Equipment (41,125) (50,500) Total assets $ 540,591 $ 471,500 Liabilities and Equity Accounts payable $ 62,141 $ 128, 175 Short-term notes payable 12,700 7,800 Total current liabilities 74,841 135,975 Long-term notes payable 60,500 57,750 Total liabilities 135, 341 193,725 Equity Common stock, $5 par value 176,250 159, 250 Paid-in capital in excess of par, common stock 51,000 0 Retained earnings 178,000 118,525 Total liabilities and equity $540,591 $ 471,500 $ 627,500 294,000 333,500 FORTEN COMPANY Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 29,750 Other expenses 141,400 Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net income 171,150 (14, 125) 148, 225 36,850 $ 111,375 Additional Information on Current Year Transactions Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $14,125 (details in b). b. Sold equipment costing $73,875, with accumulated depreciation of $39,125, for $20,625 cash. C. Purchased equipment costing $105,375 by paying $48,000 cash and signing a long-term note payable for the balance. d. Borrowed $4,900 cash by signing a short-term note payable. e. Paid $54,625 cash to reduce the long-term notes payable. f. Issued 3,400 shares of common stock for $20 cash per share. g. Declared and paid cash dividends of $51,900. Problem 12-3A Indirect: Statement of cash flows LO A1, P2, P3 Required: . Prepare a complete statement of cash flows using the indirect method for the current year. (Amounts to be deducted should be ndicated with a minus sign.) FORTEN COMPANY Statement of Cash Flows For Current Year Ended December 31 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operations: $ 0 Cash flows from investing activities 0 Cash flows from financing activities: Olo $ $ Net increase (decrease) in cash Cash balance at December 31, prior year Cash balance at December 31, current year $ 0