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
	Current Year						Prior Year
Assets
Cash		$	64,900					$	83,500
Accounts receivable			80,870						60,625
Inventory			290,656						261,800
Prepaid expenses			1,310						2,095
Total current assets			437,736						408,020
Equipment			147,500						118,000
Accum. depreciationEquipment			(41,625	)					(51,000	)
Total assets		$	543,611					$	475,020
Liabilities and Equity
Accounts payable		$	63,141					$	129,675
Short-term notes payable			13,000						8,000
Total current liabilities			76,141						137,675
Long-term notes payable			60,000						58,750
Total liabilities			136,141						196,425
Equity
Common stock, $5 par value			177,750						160,250
Paid-in capital in excess of par, common stock			52,500						0
Retained earnings			177,220						118,345
Total liabilities and equity		$	543,611					$	475,020

FORTEN COMPANY Income Statement For Current Year Ended December 31
Sales				$	632,500
Cost of goods sold					295,000
Gross profit					337,500
Operating expenses
Depreciation expense	$	30,750
Other expenses		142,400			173,150
Other gains (losses)
Loss on sale of equipment					(15,125	)
Income before taxes					149,225
Income taxes expense					38,250
Net income				$	110,975

Additional Information on Current Year Transactions

1. The loss on the cash sale of equipment was $15,125 (details in b).
2. Sold equipment costing $76,875, with accumulated depreciation of $40,125, for $21,625 cash.
3. Purchased equipment costing $106,375 by paying $50,000 cash and signing a long-term note payable for the balance.
4. Borrowed $5,000 cash by signing a short-term note payable.
5. Paid $55,125 cash to reduce the long-term notes payable.
6. Issued 3,500 shares of common stock for $20 cash per share.
7. Declared and paid cash dividends of $52,100.

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.)