Just wanted to run my final work through someone to make sure all my calculations are correct. Or if not how to come to the right answer. Please indicate if there are changes that I need to make and lead me to getting the correct answer.

Forten Company, a merchandiser, recently completed its calendar-year 2016 operations. 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. The companys income statement and balance sheets follow.

FORTEN COMPANY Comparative Balance Sheets December 31, 2016 and 2015
	2016				2015
Assets
Cash	$	52,779		$	65,500
Accounts receivable		70,025			54,625
Inventory		269,656			243,800
Prepaid expenses		1,340			1,775
Total current assets		393,800			365,700
Equipment		149,175			107,000
Accum. depreciationEquipment		(40,150	)		(47,000	)
Total assets	$	502,825		$	425,700
Liabilities and Equity
Accounts payable	$	59,375		$	109,250
Short-term notes payable		7,400			4,700
Total current liabilities		66,775			113,950
Long-term notes payable		34,325			36,500
Total liabilities		101,100			150,450
Equity
Common stock, $5 par value		157,750			146,750
Paid-in capital in excess of par, common stock		33,000			0
Retained earnings		210,975			128,500
Total liabilities and equity	$	502,825		$	425,700

FORTEN COMPANY Income Statement For Year Ended December 31, 2016
Sales				$	602,500
Cost of goods sold					293,000
Gross profit					309,500
Operating expenses
Depreciation expense	$	18,700
Other expenses		128,600			147,300
Other gains (losses)
Loss on sale of equipment					(4,175)
Income before taxes					158,025
Income taxes expense					27,750
Net income				$	130,275

Additional Information on Year 2016 Transactions

The loss on the cash sale of equipment was $4,175 (details in b).

Sold equipment costing $44,175, with accumulated depreciation of $25,550, for $14,450 cash.

Purchased equipment costing $86,350 by paying $47,000 cash and signing a long-term note payable for the balance.

Borrowed $2,700 cash by signing a short-term note payable.

Paid $41,525 cash to reduce the long-term notes payable.

Issued 2,200 shares of common stock for $20 cash per share.

Declared and paid cash dividends of $47,800.

Required:

1. Prepare a complete statement of cash flows; report its operating activities using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)

FORTEN COMPANY
Statement of Cash Flows
For Year Ended December 31, 2016
Cash flows from operating activities
Net Income	$130,275
Adjustments to reconcile net income to net cash provided by operations:
Loss on disposal of equipment	4,175
Depreciation expense	18,700
Accounts receivable increase	(15,400)
Inventory increase	(25,856)
Prepaid expense decrease	435
Accounts payable decrease	(49,875)
Net cash used in operating activities		$62,454
Cash flows from investing activities
Cash received from sale of equipment	14,450
Cash paid for equipment	(47,000)
Net cash used in investing activities		(32,550)
Cash flows from financing activities:
Cash borrowed on short-term note	2,700
Notes payable long-term decrease	(41,525)
Cash received from issuing stock	44,000
Cash paid for dividends	(47,800)
Net cash used in financing activities		(42,625)
Net increase (decrease) in cash		$(12,721)
Cash balance at beginning of year		65,500
Cash balance at end of year		$52,779