Problem 16-4AA Indirect: Cash flows spreadsheet LO P1, P2, P3, P4 Forten Company, a merchandiser, recently completed its calendar-year 2015 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 company's income statement and balance sheets follow. FORTEN COMPANY Comparative Balance Sheets December 31, 2015 and 2014 2015 2014 Assets Cash $ 49,800 $ 73,000 Accounts receivable 65,870 60,000 Inventory 277,000 252,500 Prepaid expenses 1,250 1,600 Total current assets 393,920 387,100 Equipment 158,500 107,500 Accum. depreciationEquipment (30,000) (40,000) Total assets $ 522,420 $ 454,600 Liabilities and Equity Accounts payable $ 50,970 $ 114,000 Short-term notes payable 12,000 8,000 Total current liabilities 62,970 122,000 Long-term notes payable 67,500 48,750 Total liabilities 130,470 170,750 Equity Common stock, $5 par value 162,250 150,250 Paid-in capital in excess of par, common stock 36,000 0 Retained earnings 193,700 133,600 Total liabilities and equity $ 522,420 $ 454,600 FORTEN COMPANY Income Statement For Year Ended December 31, 2015 Sales $ 584,500 Cost of goods sold 284,000 Gross profit 300,500 Operating expenses Depreciation expense $ 20,000 Other expenses 132,800 152,800 Other gains (losses) Loss on sale of equipment (5,750) Income before taxes 141,950 Income taxes expense 24,250 Net income $ 117,700 Additional Information on Year 2015 Transactions a. Net income was $117,700. b. Accounts receivable increased. c. Inventory increased. d. Prepaid expenses decreased. e. Accounts payable decreased. f. Depreciation expense was $20,000. g. Sold equipment costing $47,250, with accumulated depreciation of $30,000, for $11,500 cash. This yielded a loss of $5,750. h. Purchased equipment costing $98,250 by paying $25,000 cash and (i.) by signing a long-term note payable for the balance. j. Borrowed $4,000 cash by signing a short-term note payable. k. Paid $54,500 cash to reduce the long-term notes payable. l. Issued 2,400 shares of common stock for $20 cash per share. m. Declared and paid cash dividends of $57,600. Required: Prepare a complete statement of cash flows using a spreadsheet; report its operating activities using the indirect method. (Enter all amounts as positive values.)