Prepare a complete statement of cash flows using a spreadsheet; report its operating activities using the indirect method. (Enter all amounts as positive values.)

Forten Company, a merchandiser, recently completed its calendar-year 2017 operations. For the year, () 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 company's income statement and balance sheets follow. FORTEN COMPANY Comparative Balance Sheets December 31, 2017 and 2016 2017 2016 Assets Cash 73,900 89,500 66, 625 267,800 2,215 426,140 124,000 Accounts receivable 89,930 299, 656 1,370 Inventory Prepaid expenses Total current a3sets 464,856 Equipment Accum. depreciation-Equipment 141,500 (44,625) (54,000) 561,731 496,140 Total a3sets Liabilities and Equity Accounts payable $138,675 9,200 147,875 64,750 212, 625 69,141 14,800 83,941 57,000 Short-term notes payable Total current liabilities Long-term notes payable Total liabilities 140,941 Equity Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings 194,750 53,500 172,540 166,250 117,265 Total liabilities and equity 561,731 $496,140 FORTEN COMPANY Income Statement For Year Ended December 31, 2017 662, 500 301,000 361,500 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense 36,750 148,400 185,150 Other expenses Other gains (losses) Loss on sale of equipment (21 Income before taxes 155, 225 46, 650 Income taxes expense Net income $108,575 Additional Information on Year 2017 Transactions a. The loss on the cash sale of equipment was $21,125 (details in b). b. Sold equipment costing $94,875, with accumulated depreciation of $46,125, for $27,625 cash. c. Purchased equipment costing $112,375 by paying $62,000 cash and signing a long-term note payable for the balance. d. Borrowed $5,600 cash by signing a short-term note payable. e. Paid $58,125 cash to reduce the long-term notes payable. f. Issued 4,100 shares of common stock for $20 cash per share. g. Declared and paid cash dividends of $53,300 x Answer is not complete FORTEN COMPANY Spreadsheet for Statement of Cash Flows For Year Ended December 31, 2017 Analysis of Changes December 31, December 31, Debit Credit 2016 2017 Balance sheet-debit S Cash 89,500 S 73,900 Accounts receivable 68,625 23,305 89,930 Inventory 267,800 31,856 299,656 Prepaid expenses 1,370 2,215 845 Equipment 124,000 S 550,140 S 484,856 Balance sheet-aredit Accumulated depreciation-Equipment 54,000 Accounts payable 138,875 69,534 69,141 Short-term notes payable 9,200 Long-term notes payable 64,750 Common stock, $5 par value 168,250 Paid-in capital in excess of par value, common stodk 0 Retained earnings 117,265 S 550,140 S 69,141 Statement of cash flows Operating activities Net income 108,575 Depreciation expense 36,750 Loss on sale of equipment 21,125 Decrease in prepaid expenses 845 Increase in accounts receivable 23,305 Incresse in inventory 31,856 Decrease in accounts payable 69,534 Investing activities Payment to purchase equipment 62,000 Receipt from sale of equipment 27.825 Financing activities 82,000 Issued common stock for cash Payment of cash dividends 53,300 Payment on long-term note 58,125 Borrowed on short-term note 5,600 Non cash investing and financing activities Purchase of equipment financed by long-term note payable S 407,215 S 298,985