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 COMPANYIncome StatementFor Current Year Ended December 31Sales $ 677,500Cost of goods sold 304,000Gross profit 373,500Operating expenses (excluding depreciation)$ 151,400 Depreciation expense39,750191,150Other gains (losses) Loss on sale of equipment (24,125)Income before taxes 158,225Income taxes expense 50,850Net income $ 107,375FORTEN COMPANYComparative Balance SheetsDecember 31 Current YearPrior YearAssets Cash$ 78,400$ 92,500Accounts receivable94,46069,625Inventory304,156270,800Prepaid expenses1,4002,275Total current assets478,416435,200Equipment138,500127,000Accumulated depreciationEquipment(46,125)(55,500)Total assets$ 570,791$ 506,700Liabilities and Equity Accounts payable$ 72,141$ 143,175Long-term notes payable71,20077,550Total liabilities143,341220,725Equity Common stock, $5 par value191,250169,250Paid-in capital in excess of par, common stock66,0000Retained earnings170,200116,725Total liabilities and equity$ 570,791$ 506,700

Additional Information on Current Year Transactions

1. The loss on the cash sale of equipment was $24,125 (details in b).
2. Sold equipment costing $103,875, with accumulated depreciation of $49,125, for $30,625 cash.
3. Purchased equipment costing $115,375 by paying $68,000 cash and signing a long-term notes payable for the balance.
4. Paid $53,725 cash to reduce the long-term notes payable.
5. Issued 4,400 shares of common stock for $20 cash per share.
6. Declared and paid cash dividends of $53,900.

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.

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