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 $ 632,500 Cost of goods sold 295,000 Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) 337,500 $ 142,400 30,750 173,150 Loss on sale of equipment Income before taxes (15,125) Income taxes expense Net income FORTEN COMPANY Comparative Balance Sheets December 31 149,225 38,250 $ 110,975 Assets Cash 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 Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity Additional Information on Current Year Transactions Current Year Prior Year $ 64,900 80,870 290,656 $ 83,500 60,625 261,800 1,310 2,095 437,736 408,020 147,500 118,000 (51,000) (41,625) $ 543,611 $ 63,141 73,000 136,141 177,750 52,500 177,220 $ 475,020 $ 129,675 66,750 196,425 $ 543,611 160,250 0 118,345 $ 475,020 a. 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. Required information 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 Net loss 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 Cash paid for dividends Cash paid on long-term notes Changes in current assets and current liabilities Cash paid for dividends Cash paid for equipment Cash borrowed on short-term note Cash paid on long-term notes Cash paid for equipment Net cash provided by investing activities Cash flows from investing activities Cash borrowed on short-term note Cash paid on long-term notes Cash paid for dividends Net cash provided by financing activities Cash flows from financing activities: Cash paid for equipment Cash borrowed on short-term note Cash paid for dividends Loss on disposal of equipment Net cash used in investing activities Net increase (decrease) in cash Cash balance at December 31, prior year Cash balance at December 31, current year $ 0 0 0 $ 0 $ 0