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 $ $652,500$

Cost of goods sold $299,000$

Gross profit $353,500$

Operating expenses $($excluding depreciation$)$ $ $146,400$

Depreciation expense $34,750181,150$

Other gains $($losses$)$

Loss on sale of equipment $(19,125)$

Income before taxes $153,225$

Income taxes expense $43,850$

Net income $ $109,375$

FORTEN COMPANY

Comparative Balance Sheets

December $31$

Current Year Prior Year

Assets

Cash $ $70,900$ $ $87,500$

Accounts receivable $86,91064,625$

Inventory $296,656265,800$

Prepaid expenses $1,3502,175$

Total current assets $455,816420,100$

Equipment $143,500122,000$

Accumulated depreciation$$Equipment $(43,625)(53,000)$

Total assets $ $555,691$ $ $489,100$

Liabilities and Equity

Accounts payable $ $67,141$ $ $135,675$

Long$-$term notes payable $72,20071,550$

Total liabilities $139,341207,225$

Equity

Common stock, $$5$ par value $183,750164,250$

Paid$-$in capital in excess of par, common stock $58,5000$

Retained earnings $174,100117,625$

Total liabilities and equity $ $555,691$ $ $489,100$

Additional Information on Current Year Transactions

The loss on the cash sale of equipment was $$19,125($details in b$).$

Sold equipment costing $$88,875,$ with accumulated depreciation of $$44,125,$ for $$25,625$ cash.

Purchased equipment costing $$110,375$ by paying $$58,000$ cash and signing a long$-$term notes payable for the balance.

Paid $$51,725$ cash to reduce the long$-$term notes payable.

Issued $3,900$ shares of common stock for $$20$ cash per share.

Declared and paid cash dividends of $$52,900.$

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.