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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 COMPANYIncome StatementFor Current Year Ended December 31Sales $ 662,500Cost of goods sold 301,000Gross profit 361,500Operating expenses (excluding depreciation)$ 148,400 Depreciation expense36,750185,150Other gains (losses) Loss on sale of equipment (21,125)Income before taxes 155,225Income taxes expense 46,650Net income $ 108,575FORTEN COMPANYComparative Balance SheetsDecember 31 Current YearPrior YearAssets Cash$ 73,900$ 89,500Accounts receivable89,93066,625Inventory299,656267,800Prepaid expenses1,3702,215Total current assets464,856426,140Equipment141,500124,000Accumulated depreciationEquipment(44,625)(54,000)Total assets$ 561,731$ 496,140Liabilities and Equity Accounts payable$ 69,141$ 138,675Long-term notes payable71,80073,950Total liabilities140,941212,625Equity Common stock, $5 par value186,750166,250Paid-in capital in excess of par, common stock61,5000Retained earnings172,540117,265Total liabilities and equity$ 561,731$ 496,140

Additional Information on Current Year Transactions

1. The loss on the cash sale of equipment was $21,125 (details in b).
2. Sold equipment costing $94,875, with accumulated depreciation of $46,125, for $27,625 cash.
3. Purchased equipment costing $112,375 by paying $62,000 cash and signing a long-term notes payable for the balance.
4. Paid $52,525 cash to reduce the long-term notes payable.
5. Issued 4,100 shares of common stock for $20 cash per share.
6. Declared and paid cash dividends of $53,300.

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.

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