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		$	75,400					$	90,500
Accounts receivable			91,440						67,625
Inventory			301,156						268,800
Prepaid expenses			1,380						2,235
Total current assets			469,376						429,160
Equipment			140,500						125,000
Accum. depreciationEquipment			(45,125	)					(54,500	)
Total assets		$	564,751					$	499,660
Liabilities and Equity
Accounts payable		$	70,141					$	140,175
Short-term notes payable			15,100						9,400
Total current liabilities			85,241						149,575
Long-term notes payable			56,500						65,750
Total liabilities			141,741						215,325
Equity
Common stock, $5 par value			188,250						167,250
Paid-in capital in excess of par, common stock			63,000						0
Retained earnings			171,760						117,085
Total liabilities and equity		$	564,751					$	499,660

FORTEN COMPANY Income Statement For Current Year Ended December 31
Sales				$	667,500
Cost of goods sold					302,000
Gross profit					365,500
Operating expenses
Depreciation expense	$	37,750
Other expenses		149,400			187,150
Other gains (losses)
Loss on sale of equipment					(22,125	)
Income before taxes					156,225
Income taxes expense					48,050
Net income				$	108,175

Additional Information on Current Year Transactions

1. The loss on the cash sale of equipment was $22,125 (details in b).
2. Sold equipment costing $97,875, with accumulated depreciation of $47,125, for $28,625 cash.
3. Purchased equipment costing $113,375 by paying $64,000 cash and signing a long-term note payable for the balance.
4. Borrowed $5,700 cash by signing a short-term note payable.
5. Paid $58,625 cash to reduce the long-term notes payable.
6. Issued 4,200 shares of common stock for $20 cash per share.
7. Declared and paid cash dividends of $53,500.

Required: Prepare a complete statement of cash flows using the direct method. (Amounts to be deducted should be indicated with a minus sign.)