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[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.

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

The loss on the cash sale of equipment was $11,125 (details in b).

Sold equipment costing $64,875, with accumulated depreciation of $36,125, for $17,625 cash.

Purchased equipment costing $102,375 by paying $42,000 cash and signing a long-term notes payable for the balance.

Paid $48,525 cash to reduce the long-term notes payable.

Issued 3,100 shares of common stock for $20 cash per share.

Declared and paid cash dividends of $51,300.

Required: Prepare a complete statement of cash flows using a spreadsheet using the indirect method. (Enter all amounts as positive values.)

FORTEN COMPANY
Spreadsheet for Statement of Cash Flows
For Current Year Ended December 31
	December 31, Prior Year	Analysis of Changes		December 31, Current Year
		Debit	Credit
Balance sheetdebit
Cash	$79,500			$58,900
Accounts receivable	56,625
Inventory	257,800
Prepaid expenses	2,015		$745	1,270
Equipment	114,000
	$509,940			$60,170
Balance sheetcredit
Accumulated depreciationEquipment	$49,000
Accounts payable	123,675
Long-term notes payable	61,950
Common stock, $5 par value	156,250
Paid-in capital in excess of par value, common stock	0
Retained earnings	119,065
	$509,940			$0
Statement of cash flows
Operating activities
Decrease in accounts payable
Increase in accounts receivable
Increase in inventory
Decrease in prepaid expenses
Investing activities
Receipt from sale of equipment
Payment to purchase equipment
Financing activities
Issued common stock for cash
Non cash investing and financing activities
Purchase of equipment financed by long-term notes payable
		$0	$745