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 $ 602,500 Cost of goods sold 289,000 Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) 313,500 $136,400 24,750 161,150 Loss on sale of equipment (9,125) Income before taxes Income taxes expense Net income 143,225 29,850 $113,375 FORTEN COMPANY Comparative Balance Sheets December 31 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 Current Year Prior $ 55,900 $ 77 71,810 54 281, 656 255 1,250 410,616 153,500 (38,625) 389 112 (48 $ 525,491 $ 453 $ 57,141 74,200 $ 120 59 131,341 180 168,750 154 43,500 181,900 119 $ 525,491 $ 453 Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $9,125 (details in b). b. Sold equipment costing $58,875, with accumulated depreciation of $34,125, for $15,625 cash. c. Purchased equipment costing $100,375 by paying $38,000 cash and signing a long-term notes payable for the balance. d. Paid $47,725 cash to reduce the long-term notes payable. e. Issued 2,900 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $50,900. 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.) FORTEN COMPANY Statement of Cash Flows