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, () 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. Sales Cost of goods sold Gross profit FORTEN COMPANY Income Statement fer Current Year Ended December 31 Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Loss on sale of equipment 5 632,500 295,000 317,500 $142,400 30,750 173,150 (15,125) Incone before taxes Income taxes expense Net incone Assets Cash Accounts receivable FORTEN COMPANY Comparative Balance Sheets December 11 Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable 149,225 38,250 $110,975 Current Year Prior Year $ 64,900 30,870 290,656 5 83,500 60,625 261,800 1,310 2,095 437,736 408,020 147,500 (41,625) 5543,611 118,000 (51,000) $ 475,020 $63,141 $129,675 Long-ters notes payable 73,000 66,750 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 Retained earnings 52,500 177,220 118,345 Total liabilities and equity 5543,611 5 475,020 Additional Information on Current Year Transactions e. The loss on the cash sale of equipment was $15,125 (details in b b. Sold equipment costing $76,875, with accumulated depreciation of $40,125, for $21,625 cash c. Purchased equipment costing $106,375 by paying $50,000 cash and signing a long-term notes payable for the balance. d. Paid $50,125 cash to reduce the long-term notes payable. e. Issued 3,500 shares of common stock for $20 cash per share. f. 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. Note: Amounts to be deducted should be Indicated with a minus sign. Cash flows from operating activities FORTEN COMPANY Statement of Cash Flows For Current Year Ended December 31 Adjustments to reconcile net income to net cash provided by operations: Income statement items not affecting cash Changes in current assets and current liabilities Cash flows from investing activities Cash flows from financing activities: Net increase (decrease) in cash Cash balance at December 31, prior year Cash balance at December 31, current year $ o 0 $ $ 1