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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		$ 682,500
Cost of goods sold		305,000
Gross profit		377,500
Operating expenses (excluding depreciation)	$ 152,400
Depreciation expense	40,750	193,150
Other gains (losses)
Loss on sale of equipment		(25,125)
Income before taxes		159,225
Income taxes expense		52,250
Net income		$ 106,975

FORTEN COMPANY
Comparative Balance Sheets
December 31
	Current Year	Prior Year
Assets
Cash	$ 79,900	$ 93,500
Accounts receivable	95,970	70,625
Inventory	305,656	271,800
Prepaid expenses	1,410	2,295
Total current assets	482,936	438,220
Equipment	137,500	128,000
Accumulated depreciationEquipment	(46,625)	(56,000)
Total assets	$ 573,811	$ 510,220
Liabilities and Equity
Accounts payable	$ 73,141	$ 144,675
Long-term notes payable	71,000	78,750
Total liabilities	144,141	223,425
Equity
Common stock, $5 par value	192,750	170,250
Paid-in capital in excess of par, common stock	67,500	0
Retained earnings	169,420	116,545
Total liabilities and equity	$ 573,811	$ 510,220

Additional Information on Current Year Transactions

1. The loss on the cash sale of equipment was $25,125 (details in b).
2. Sold equipment costing $106,875, with accumulated depreciation of $50,125, for $31,625 cash.
3. Purchased equipment costing $116,375 by paying $70,000 cash and signing a long-term notes payable for the balance.
4. Paid $54,125 cash to reduce the long-term notes payable.
5. Issued 4,500 shares of common stock for $20 cash per share.
6. Declared and paid cash dividends of $54,100.

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.