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 $ 597,500 Cost of goods sold 288,000 Gross profit 309,500 Operating expenses (excluding depreciation) $ 135,400 Depreciation expense 23,750 159,150 Other gains (losses) Loss on sale of equipment (8,125 ) Income before taxes 142,225 Income taxes expense 28,450 Net income $ 113,775 FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year Assets Cash $ 54,400 $ 76,500 Accounts receivable 70,310 53,625 Inventory 280,156 254,800 Prepaid expenses 1,280 2,005 Total current assets 406,146 386,930 Equipment 154,500 111,000 Accum. depreciationEquipment (38,125 ) (47,500 ) Total assets $ 522,521 $ 450,430 Liabilities and Equity Accounts payable $ 56,141 $ 119,175 Short-term notes payable 10,900 6,600 Total current liabilities 67,041 125,775 Long-term notes payable 63,500 51,750 Total liabilities 130,541 177,525 Equity Common stock, $5 par value 167,250 153,250 Paid-in capital in excess of par, common stock 42,000 0 Retained earnings 182,730 119,655 Total liabilities and equity $ 522,521 $ 450,430 Additional Information on Current Year Transactions The loss on the cash sale of equipment was $8,125 (details in b). Sold equipment costing $55,875, with accumulated depreciation of $33,125, for $14,625 cash. Purchased equipment costing $99,375 by paying $36,000 cash and signing a long-term note payable for the balance. Borrowed $4,300 cash by signing a short-term note payable. Paid $51,625 cash to reduce the long-term notes payable. Issued 2,800 shares of common stock for $20 cash per share. Declared and paid cash dividends of $50,700.

Required information Use the following information for the Problems below. (Algo) (The following information applies to the questions displayed below.) 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. $ 597,500 288,000 309,500 FORTEN COMPANY Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net income $ 135,400 23,750 159, 150 (8,125) 142,225 28,450 $ 113,775 FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year $ 54,400 70,310 280,156 1,280 406,146 154,500 (38,125) $ 522,521 $ 76,500 53,625 254,800 2,005 386,930 111,000 (47,500) $ 450, 430 Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment Total assets Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities Long-term notes payable Total liabilities Equity Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity $ 56,141 10,900 67,041 63,500 130,541 $ 119,175 6,600 125,775 51,750 177,525 153,250 167,250 42,000 182,730 $ 522,521 119,655 $ 450,430 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $8,125 (details in b). b. Sold equipment costing $55,875, with accumulated depreciation of $33,125, for $14,625 cash. c. Purchased equipment costing $99,375 by paying $36,000 cash and signing a long-term note payable for the balance. d. Borrowed $4,300 cash by signing a short-term note payable. e. Paid $51,625 cash to reduce the long-term notes payable. f. Issued 2,800 shares of common stock for $20 cash per share. g. Declared and paid cash dividends of $50,700. Problem 12-3A (Algo) Indirect: Statement of cash flows LO A1, P2, P3 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 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operations: Income statement items not affecting cash Changes in current assets and current liabilities 0 Cash flows from investing activities 0 Cash flows from financing activities: 0 $ Net increase (decrease) in cash Cash balance at December 31, prior year Cash balance at December 31, current year 0