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 $ 55,900 71,810 281,656 1,250 410,616 153,500 (38.625) $525, 491 $ 77,500 54,625 255,800 1,975 389,900 112,000 (48,000) $453,900 Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accun. 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 $ 57,161 11,200 68,361 63,000 131,361 $120, 675 6,800 127,475 52,250 180,225 168,750 43,500 181,900 $525,491 154,250 0 119,425 $453,900 FORTES COMPANY Income statement Tor Current Year Ended December 31 5602,500 289,000 313,500 cost of goods Hold Gross profit Operating expenses Depreciation expense other expenses Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense et Income 5 24,750 1:38.400 161, 150 0.125 143, 225 29,850 5113,375 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $9,125 (details in b). b. Sold equipment costing $58,875, with accumulated depreciation of $34,125, for $15,625 cash. c. Purchased equipment costing $100.375 by paying $38,000 cash and signing a long-term note payable for the balance. d. Borrowed $4,400 cash by signing a short-term note payable. e. Pald $52,125 cash to reduce the long-term notes payable. 1. Issued 2,900 shares of common stock for $20 cash per share, g. Declared and paid cash dividends of $50,900, 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 Flow For Current Year Ended December 31 Cash flows from operating activities Adjustments to reconcile not income to not cash provided by operations: S Cash flows from investing activities 0 Cash Tows from financing activities: O S 0 Nat increase idecrease in cash Cash balance at December 31. prior year Cash balance at December 31, current year $ 0