Required information Skip to question [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, (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. FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year Assets Cash $ 69,400 $ 86,500 Accounts receivable 85,400 63,625 Inventory 295,156 264,800 Prepaid expenses 1,340 2,155 Total current assets 451,296 417,080 Equipment 144,500 121,000 Accum. depreciationEquipment (43,125 ) (52,500 ) Total assets $ 552,671 $ 485,580 Liabilities and Equity Accounts payable $ 66,141 $ 134,175 Short-term notes payable 13,900 8,600 Total current liabilities 80,041 142,775 Long-term notes payable 58,500 61,750 Total liabilities 138,541 204,525 Equity Common stock, $5 par value 182,250 163,250 Paid-in capital in excess of par, common stock 57,000 0 Retained earnings 174,880 117,805 Total liabilities and equity $ 552,671 $ 485,580 FORTEN COMPANY Income Statement For Current Year Ended December 31 Sales $ 647,500 Cost of goods sold 298,000 Gross profit 349,500 Operating expenses Depreciation expense $ 33,750 Other expenses 145,400 179,150 Other gains (losses) Loss on sale of equipment (18,125 ) Income before taxes 152,225 Income taxes expense 42,450 Net income $ 109,775 Additional Information on Current Year Transactions The loss on the cash sale of equipment was $18,125 (details in b). Sold equipment costing $85,875, with accumulated depreciation of $43,125, for $24,625 cash. Purchased equipment costing $109,375 by paying $56,000 cash and signing a long-term note payable for the balance. Borrowed $5,300 cash by signing a short-term note payable. Paid $56,625 cash to reduce the long-term notes payable. Issued 3,800 shares of common stock for $20 cash per share. Declared and paid cash dividends of $52,700. 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.)