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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
Income Statement
For Current Year Ended December 31
Sales		$ 612,500
Cost of goods sold		291,000
Gross profit		321,500
Operating expenses (excluding depreciation)	$ 138,400
Depreciation expense	26,750	165,150
Other gains (losses)
Loss on sale of equipment		(11,125)
Income before taxes		145,225
Income taxes expense		32,650
Net income		$ 112,575

FORTEN COMPANY
Comparative Balance Sheets
December 31
	Current Year	Prior Year
Assets
Cash	$ 58,900	$ 79,500
Accounts receivable	74,830	56,625
Inventory	284,656	257,800
Prepaid expenses	1,270	2,015
Total current assets	419,656	395,940
Equipment	151,500	114,000
Accumulated depreciationEquipment	(39,625)	(49,000)
Total assets	$ 531,531	$ 460,940
Liabilities and Equity
Accounts payable	$ 59,141	$ 123,675
Long-term notes payable	73,800	61,950
Total liabilities	132,941	185,625
Equity
Common stock, $5 par value	171,750	156,250
Paid-in capital in excess of par, common stock	46,500	0
Retained earnings	180,340	119,065
Total liabilities and equity	$ 531,531	$ 460,940

Additional Information on Current Year Transactions

1. The loss on the cash sale of equipment was $11,125 (details in b).
2. Sold equipment costing $64,875, with accumulated depreciation of $36,125, for $17,625 cash.
3. Purchased equipment costing $102,375 by paying $42,000 cash and signing a long-term notes payable for the balance.
4. Paid $48,525 cash to reduce the long-term notes payable.
5. Issued 3,100 shares of common stock for $20 cash per share.
6. Declared and paid cash dividends of $51,300.

Problem 12-3A (Algo) Indirect: Statement of cash flows LO A1, P2, P3

Required:

1. Prepare a complete statement of cash flows using the indirect method for the current year.

Note: Amounts to be deducted should be indicated with a minus sign.

Problem 12-3A (Algo) Indirect: Statement of cash flows LO A1, P2, P3

Required:

1. Prepare a complete statement of cash flows using the indirect method for the current year.

Note: Amounts to be deducted should be indicated with a minus sign.