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 $ 0,500 285. 156 258. 2,035 398,960 Accounts receivable Inventory Prepaid expenses Total current assets Equipment Acc. depreciation Equipment Total assets Liabilities and Equity Accounts payable Short-ter notes payable Total current liabilities Long-term notes payable Total liabilities (40, 125 $ 534,551 (49,5 ) 464, 460 60.101 $125,125 7.400 132,575 55,750 180, 325 157,250 Common stock, 55 par value Paid-in capital in excess of par, Coron stock Retained earnings Total liabilities and equity 179.560 $ 334,551 118,885 5464.460 PORTEN COMPANY Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 27,750 Other expenses Other gains (losses) Loss on sale of equipment Incone before taxes Income taxes expense Net income 12,125 5 112,175 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.) FORTEN COMPANY Statement of Cash Flows For Current Year Ended December 31 Cashows from operating activities 3 Adjustments to reconcile net income to net cash provided by operations Cash flows from investing activities Cash flows from financing activities Net increase (decrease in cash Cash balance 1 year Cash bace at Decembar curent year Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $12,125 (details in b). b. Sold equipment costing $67,875, with accumulated depreciation of $37,125, for $18,625 cash. c. Purchased equipment costing $103,375 by paying $44,000 cash and signing a long-term note payable for the balance. d. Borrowed $4,700 cash by signing a short-term note payable. e. Paid $53,625 cash to reduce the long-term notes payable. f. Issued 3,200 shares of common stock for $20 cash per share. g. Declared and paid cash dividends of $51,500