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, and (4) all debits to Accounts Payable reflect cash payments for inventory. \begin{tabular}{|c|c|c|} \hline \begin{tabular}{c} FORTEN COMPANY \\ Comparative Balance Sheets \\ December 31 \end{tabular} & Current Year & Prior Year \\ \hline \\ \hline Cash & $52,900 & $75,500 \\ \hline Accounts receivable & 68,810 & 52,625 \\ \hline Inventory & 278,656 & 253,800 \\ \hline Prepaid expenses & 1,270 & 1,995 \\ \hline Total current assets & 401,636 & 383,920 \\ \hline Equipment & 155,500 & 110,000 \\ \hline Accumulated depreciation-Equipment & (37,625) & (47,000) \\ \hline Total assets & $519,511 & $446,920 \\ \hline Liabilities and Equity & & \\ \hline Accounts payable & $55,141 & $117,675 \\ \hline Long-term notes payable & 74,600 & 57,150 \\ \hline Total liabilities & 129,741 & 174,825 \\ \hline Equity & & \\ \hline Common stock, \$5 par value & 165,750 & 152,250 \\ \hline Paid-in capital in excess of par, common stock & 40,500 & 0 \\ \hline Retained earnings & 183,520 & 119,845 \\ \hline Total liabilities and equity & $519,511 & $446,920 \\ \hline \end{tabular} Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $7,125 (details in b ). b. Sold equipment costing $52,875, with accumulated depreciation of $32,125, for $13,625 cash. c. Purchased equipment costing $98,375 by paying $34,000 cash and signing a long-term notes payable for the balance. d. Paid $46,925 cash to reduce the long-term notes payable. e. Issued 2,700 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $50,500. Required: Prepare a complete statement of cash flows using the direct method. Note: Amounts to be deducted should be indicated with a minus sign. \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|l|}{ Cash flows from operating activities } \\ \hline Cash received from customers & 576,315 & \\ \hline Cash paid for inventory & (249,322) & \\ \hline Cash paid for operating expenses & 725 & \\ \hline Cash paid for income taxes & (62,534) & \\ \hline Net cash provided by operating activities & & $265,184 \\ \hline \multicolumn{3}{|l|}{ Cash flows from investing activities } \\ \hline Cash received from sale of equipment & 13,625 & \\ \hline Cash paid for equipment & (34,000) & \\ \hline Net cash used in investing activities & & (20,375) \\ \hline \multicolumn{3}{|l|}{ Cash flows from financing activities } \\ \hline Cash received from issuing stock & 54,000 & \\ \hline Cash paid on long-term notes & (46,925) & \\ \hline Cash paid for dividends & (50,500)( & \\ \hline Net cash used in financing activities & & (43,425) \\ \hline Net increase (decrease) in cash & & $201,384 \\ \hline Cash balance at December 31, prior year & & 75,500 \\ \hline Cash balance at December 31, current year & & $276,884 \\ \hline \end{tabular}