Required: $1.$ Prepare a complete statement of cash flows using the indirect method for the current year. $($Amounts to be deducted should be indicated with a minus sign.$)$ FORTEN COMPANY Statement of Cash Flows For Current Year Ended December $31$ Cash flows from operating activities Net income $ $114,575$ Adjustments to reconcile net income to net cash provided by operations: Income statement items not affecting cash Depreciation expense $21,750$ Changes in current assets and current liabilities Increase in accounts receivable $(15,685)(24,356)$ Increase in inventory Decrease in prepaid expenses Decrease in accounts payable $725(62,034)|$ $ $34,975$ Net cash provided by operating activities Cash flows from investing activities Cash paid for equipment Cash received from sale of equipment $(32,000)12,625(19,375)$ Net cash used in investing activities Cash flows from financing activities: Cash paid on long$-$term notes Cash received from issuing stock Cash paid for dividends $(46,525)52,000(50,300)(44,825)$ $ $(29,225)$ Net cash used in financing activities Net increase $($decrease$)$ in cash Cash balance at December $31,$ prior year Cash balance at December $31,$ current year $74,500$ $ $45,275!$ Required information $[$The following information applies to the questions displayed below.$]$ 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. $ $587,500286,000301,500$ FORTEN COMPANY Income Statement For Current Year Ended December $31$ Sales Cost of goods sold Gross profit Operating expenses $($excluding $ $133,400$ depreciation$)$ Depreciation expense $21,750$ Other gains $($losses$)$ Loss on sale of equipment Income before taxes Income taxes expense Net income $155,150(6,125)140,22525,650$ $ $114,575$ FORTEN COMPANY Comparative Balance Sheets December $31$ Current Year Prior Year Assets Cash $ $51,40067,310277,1561,300397,166156,500(37,125)$ $ $516,541$ $ $74,50051,625252,8002,025380,950109,000(46,500)$ $ $443,450$ Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation$-$Equipment Total assets Liabilities and Equity Accounts payable Long$-$term notes payable Total liabilities Equity Common stock, $$5$ par value Paid$-$in capital in excess of par, common stock Retained earnings Total liabilities and equity $ $54,14174,800128,941$ $ $116,17555,950172,125164,25039,000184,350$ $ $516,541151,2500120,075$ $ $443,450$ Additional Information on Current Year Transactions Required information Prepare a complete statement of cash tows using a spreaasneet using the indirect menoa. $($Enter all amounts as positive vai FORTEN COMPANY Spreadsheet for Statement of Cash Flows For Current Year Ended December $31$ December $31,$ Prior Analysis of Changes Year Debit Credit December $31,$ Current Year Balance sheet$-$debit Cash $ $ $51,400$ Accounts receivable Inventory Prepaid expenses Equipment $74,50051,625252,8002,025109,000489,950$ $ $ $51,400$ $ $46,500$ Balance sheet$-$credit Accumulated depreciation Equipment Accounts payable Long$-$term notes payable Common stock, $$5$ par value Paid$-$in capital in excess of par value, common stock Retained earnings $116,17555,950151,2500120,075489,950$ $ $ $0$ Statement of cash flows Operating activities Investing activities Financing activities