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 Comparative Balance Sheets At December 31 Current Year Prior Year Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment Total assets Liabilities and Equity Accounts payable Long-term notes payable Total liabilities Equity Common stock, \$5 par value Paid-in capital in excess of par, common stock \begin{tabular}{rr} $49,800 & $73,500 \\ 65,810 & 50,625 \\ 275,656 & 251,800 \\ 1,250 & 1,875 \\ \hline 392,516 & 377,800 \\ 157,500 & 108,000 \\ $513,391(36,625) & $46,000) \\ \hline \end{tabular} Retained earnings Total liabilities and equity \begin{tabular}{rr} $53,141 & $114,675 \\ 75,000 & 54,750 \\ \hline 128,141 & 169,425 \end{tabular} Total liabilities and equity \begin{tabular}{rr} 162,750 & 150,250 \\ 37,500 & 0 \\ 185,000 & 120,125 \\ \hline$513,391 & $439,800 \\ \hline \end{tabular} Additional information on Current-Year Transactions a. The loss on the cash sale of equipment was $5,125 (details in b ). b. Sold equipment costing $46,875, with accumulated depreciation of $30,125, for $11,625 cash. c. Purchased equipment costing $96,375 by paying $30,000 cash and signing a long-term notes payable for the balance. d. Paid $46,125 cash to reduce the long-term notes payable. e. Issued 2,500 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $50,100. Required 1. Prepare a complete statement of cash flows using the indirect method for the current year. Disclose any noncash investing and financing activities in a note. Check Cadh from operating acthities. 540.900 Analysis Component 2. Analyze and discuss the statement of cash flows prepared in part 1 , giving special attention to the wisdom of the cash dividend payment