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		$	79,900					$	93,500
Accounts receivable			95,970						70,625
Inventory			305,656						271,800
Prepaid expenses			1,410						2,295
Total current assets			482,936						438,220
Equipment			137,500						128,000
Accum. depreciationEquipment			(46,625	)					(56,000	)
Total assets		$	573,811					$	510,220
Liabilities and Equity
Accounts payable		$	73,141					$	144,675
Short-term notes payable			16,000						10,000
Total current liabilities			89,141						154,675
Long-term notes payable			55,000						68,750
Total liabilities			144,141						223,425
Equity
Common stock, $5 par value			192,750						170,250
Paid-in capital in excess of par, common stock			67,500						0
Retained earnings			169,420						116,545
Total liabilities and equity		$	573,811					$	510,220

FORTEN COMPANY Income Statement For Current Year Ended December 31
Sales				$	682,500
Cost of goods sold					305,000
Gross profit					377,500
Operating expenses
Depreciation expense	$	40,750
Other expenses		152,400			193,150
Other gains (losses)
Loss on sale of equipment					(25,125	)
Income before taxes					159,225
Income taxes expense					52,250
Net income				$	106,975

Additional Information on Current Year Transactions

1. The loss on the cash sale of equipment was $25,125 (details in b).
2. Sold equipment costing $106,875, with accumulated depreciation of $50,125, for $31,625 cash.
3. Purchased equipment costing $116,375 by paying $70,000 cash and signing a long-term note payable for the balance.
4. Borrowed $6,000 cash by signing a short-term note payable.
5. Paid $60,125 cash to reduce the long-term notes payable.
6. Issued 4,500 shares of common stock for $20 cash per share.
7. Declared and paid cash dividends of $54,100.

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

3. Prepare a complete statement of cash flows using the direct method. (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: 0 Cash flows from investing activities 0 Cash flows from financing activities: 0 $ 0 Net increase (decrease) in cash Cash balance at December 31, prior year Cash balance at December 31, current year $ 0 FORTEN COMPANY Spreadsheet for Statement of Cash Flows For Current Year Ended December 31 Analysis of Changes December 31, Prior Debit Credit Year December 31, Current Year $ $ 79,900 Balance sheet-debit Cash Accounts receivable Inventory Prepaid expenses Equipment 93,500 70,625 271,800 2.295 128,000 566,220 $ $ 79,900 $ 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 56,000 144,675 10,000 68,750 170,250 0 116,545 566,220 $ $ 0 Statement of cash flows Operating activities Investing activities Financing activities Non cash investing and financing activities Purchase of equipment financed by long-term note payable $ 0 $ 0 FORTEN COMPANY Statement of Cash Flows For Current Year Ended December 31 Cash flows from operating activities $ 0 Cash flows from investing activities 0 Cash flows from financing activities 0 $ 0 Net increase (decrease) in cash Cash balance at December 31, prior year Cash balance at December 31, current year $ 0