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 $ $627,500$

Cost of goods sold $294,000$

Gross profit $333,500$

Operating expenses $($excluding depreciation$)$ $ $141,400$

Depreciation expense $29,750171,150$

Other gains $($losses$)$

Loss on sale of equipment $(14,125)$

Income before taxes $148,225$

Income taxes expense $36,850$

Net income $ $111,375$

FORTEN COMPANY

Comparative Balance Sheets

December $31$

Current Year Prior Year

Assets

Cash $ $63,400$ $ $82,500$

Accounts receivable $79,36059,625$

Inventory $289,156260,800$

Prepaid expenses $1,3002,075$

Total current assets $433,216405,000$

Equipment $148,500117,000$

Accumulated depreciation$$Equipment $(41,125)(50,500)$

Total assets $ $540,591$ $ $471,500$

Liabilities and Equity

Accounts payable $ $62,141$ $ $128,175$

Long$-$term notes payable $73,20065,550$

Total liabilities $135,341193,725$

Equity

Common stock, $$5$ par value $176,250159,250$

Paid$-$in capital in excess of par, common stock $51,0000$

Retained earnings $178,000118,525$

Total liabilities and equity $ $540,591$ $ $471,500$

Additional Information on Current Year Transactions

The loss on the cash sale of equipment was $$14,125($details in b$).$

Sold equipment costing $$73,875,$ with accumulated depreciation of $$39,125,$ for $$20,625$ cash.

Purchased equipment costing $$105,375$ by paying $$48,000$ cash and signing a long$-$term notes payable for the balance.

Paid $$49,725$ cash to reduce the long$-$term notes payable.

Issued $3,400$ shares of common stock for $$20$ cash per share.

Declared and paid cash dividends of $$51,900.$

Required:

$1.$ Prepare a complete statement of cash flows using the indirect method for the current year.

Note: Amounts to be deducted should be indicated with a minus sign.