Problem $16-3$A Indirect: Statement of 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 cash flows

A$11$ P$213$ payments for inventory.

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 casin dividends of $$50,100.$

Required

Chesk Cash from operating activities, $$40,900$

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.

Analysis Component

Analyze and discuss the statement of cash flows prepared in part $1,$ giving special attention to the wisdom of the cash dividend payment.

Use the following information to prepare a statement of cash flows for the current year using the indirect method. Exercise $16-13$

$\backslash$table$[[\backslash$table$[[$MONTGOMERY$,],[$At December $31,$Comparative Balanc$]],\backslash$table$[[$INC$.],[$e Sheets$],[$Current Year$]],$Prior Year$],[$Assets$],[$Cash $.............................,$$$30,400,$$$30,550$