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, (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 Prior Year Current Year Assets $ 78,500 Cash 57,400 73,320 283,156 Accounts receivable Inventory Prepaid expenses 55,625 256,800 1,260 415,136 152,500 (39,125) 1,995 392,920 113,000 Total current assets Equipment Accum depreciation-Equipment (48,500) $528,511 $457,420 Total assets Liabilities and Equity Accounts payable Short-term notes payable 58,141 $122,175 7,000 11,500 Total current liabilities 69,641 62,500 129,175 Long-term notes payable Total liabilities 53,750 182,925 132,141 Equity Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings 170,250 45,000 155,250 0 181,120 119,245 Total liabilities and equity $528,511 $457,420 FORTEN COMPANY Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses $607,500 290,000 317,500 25,750 137,400 163,150 Other gains (losses) Loss on sale of equipment (10,125) 144,225 31,250 Income before taxes Income taxes expense $112,975 Net income Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $10,125 (details in b) b. Sold equipment costing $61,875, with accumulated depreciation of $35,125, for $16,625 cash. c. Purchased equipment costing $101,375 by paying $40,000 cash and signing a long-term note payable for the balance. d. Borrowed $4,500 cash by signing a short-term note payable. e. Paid $52,625 cash to reduce the long-term notes payable. f. Issued 3,000 shares of common stock for $20 cash per share. g.Declared and paid cash dividends of $51,100 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 Analysis of Changes December 31, Current Year December 31, Prior Year Credit Debit Balance sheet-debit Cash 78,500 $ 57,400 $ Accounts receivable 55,625 256,800 Inventory Prepaid expenses 1,995 Equipment 113,000 505,920 57,400 Balance sheet-credit 48,500 Accumulated depreciation-Equipment $ Accounts payable 122,175 Short-term notes payable 7,000 Long-term notes payable 53,750 Common stock, $5 par value 155,250 Paid-in capital in excess of par value, common stock 0 Retained earnings 119,245 $ 505,920 $ C 0 Statement of cash flows Operating activities CD Prev of 5 S Statement of cash flows Operating activities Investing activities Financing activities Non cash investing and financing activities Purchase of equipment financed by long-term note payable C 0