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. FORTEN COMPANY Income Statement For Current Year Ended December 31 Sales $ 662,500 Cost of goods sold 301,000 Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net income 361,500 $ 148,400 36,750 185,150 (21,125) 155,225 46,650 $ 108,575 Assets Cash FORTEN COMPANY Comparative Balance Sheets. December 31 Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Long-term notes payable Total liabilities Equity Current Year Prior Year $ 73,900 89,930 $ 89,500 66,625 267,800 299,656 1,370 2,215 464,856 141,500 426,140 (44,625) $ 561,731 $ 69,141 71,800 140,941 124,000 (54,000) $ 496,140 $ 138,675 73,950 212,625 166,250 Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity 186,750 61,500 172,540 $ 561,731 0 117,265 $ 496,140 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $21,125 (details in b). b. Sold equipment costing $94,875, with accumulated depreciation of $46,125, for $27,625 cash. c. Purchased equipment costing $112,375 by paying $62,000 cash and signing a long-term notes payable for the balance. d. Paid $52,525 cash to reduce the long-term notes payable. e. Issued 4,100 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $53,300. Required: Prepare a complete statement of cash flows using a spreadsheet using the indirect method. Note: Enter all amounts as positive values. Balance sheet-debit Cash Accounts receivable Inventory Prepaid expenses Equipment Balance sheet-credit Accumulated depreciation-Equipment Accounts payable FORTEN COMPANY Spreadsheet for Statement of Cash Flows For Current Year Ended December 31 Analysis of Changes December 31, Prior December 31, Year Debit Credit Current Year Long-term notes payable Common stock, $5 par value Paid-in capital in excess of par value, common stock Retained earnings $ 89,500 66,625 267,800 2,215 $ 73,900 124,000 $ 550,140 $ 73,900 $ 54,000 138,675 73,950 | SA 166,250 0 117,265 550,140 $ 0 Statement of cash flows Operating activities Investing activities Financing activities Non cash investing and financing activities Purchase of equipment financed by long-term notes payable 0 $ 0