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		$	57,400					$	78,500
Accounts receivable			73,320						55,625
Inventory			283,156						256,800
Prepaid expenses			1,260						1,995
Total current assets			415,136						392,920
Equipment			152,500						113,000
Accum. depreciationEquipment			(39,125	)					(48,500	)
Total assets		$	528,511					$	457,420
Liabilities and Equity
Accounts payable		$	58,141					$	122,175
Short-term notes payable			11,500						7,000
Total current liabilities			69,641						129,175
Long-term notes payable			62,500						53,750
Total liabilities			132,141						182,925
Equity
Common stock, $5 par value			170,250						155,250
Paid-in capital in excess of par, common stock			45,000						0
Retained earnings			181,120						119,245
Total liabilities and equity		$	528,511					$	457,420

FORTEN COMPANY Income Statement For Current Year Ended December 31
Sales				$	607,500
Cost of goods sold					290,000
Gross profit					317,500
Operating expenses
Depreciation expense	$	25,750
Other expenses		137,400			163,150
Other gains (losses)
Loss on sale of equipment					(10,125	)
Income before taxes					144,225
Income taxes expense					31,250
Net income				$	112,975

Additional Information on Current Year Transactions

1. The loss on the cash sale of equipment was $10,125 (details in b).
2. Sold equipment costing $61,875, with accumulated depreciation of $35,125, for $16,625 cash.
3. Purchased equipment costing $101,375 by paying $40,000 cash and signing a long-term note payable for the balance.
4. Borrowed $4,500 cash by signing a short-term note payable.
5. Paid $52,625 cash to reduce the long-term notes payable.
6. Issued 3,000 shares of common stock for $20 cash per share.
7. Declared and paid cash dividends of $51,100.

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

For Current Year Ended December 31 Analysis of Changes December 31, Prior Year Debit Credit December 31, Current Year $ $ 0 $ 57,400 0 Balance sheet-debit Cash Accounts receivable Inventory Prepaid expenses Equipment 0 78,500 55,625 256,800 1,995 113,000 505,920 $ $ 57,400 $ 0 0 Balance sheet-credit Accumulated depreciation-Equipment Accounts payable Short-term notes payable Long-term notes payable Common stock, $5 par value Paid-in capital in excess of par value, common stock Retained earnings 48,500 122,175 7,000 53,750 155,250 0 Olo 119,245 505,920 $ $ 0 Statement of cash flows Operating activities Net income Depreciation expense Loss on sale of equipment Decrease in prepaid expenses Increase in accounts receivable Increase in inventory Decrease in accounts payable Investing activities Payment to purchase equipment Receipt from sale of equipment Financing activities Issued common stock for cash Payment of cash dividends Payment on long-term note Borrowed on short-term note Non cash investing and financing activities Purchase of equipment financed by long-term note payable $ 0 $ 0 For Current Year Ended December 31 Analysis of Changes December 31, Prior Year Debit Credit December 31, Current Year $ $ 0 $ 57,400 0 Balance sheet-debit Cash Accounts receivable Inventory Prepaid expenses Equipment 0 78,500 55,625 256,800 1,995 113,000 505,920 $ $ 57,400 $ 0 0 Balance sheet-credit Accumulated depreciation-Equipment Accounts payable Short-term notes payable Long-term notes payable Common stock, $5 par value Paid-in capital in excess of par value, common stock Retained earnings 48,500 122,175 7,000 53,750 155,250 0 Olo 119,245 505,920 $ $ 0 Statement of cash flows Operating activities Net income Depreciation expense Loss on sale of equipment Decrease in prepaid expenses Increase in accounts receivable Increase in inventory Decrease in accounts payable Investing activities Payment to purchase equipment Receipt from sale of equipment Financing activities Issued common stock for cash Payment of cash dividends Payment on long-term note Borrowed on short-term note Non cash investing and financing activities Purchase of equipment financed by long-term note payable $ 0 $ 0