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 $ 582, 508 Cost of goods sold 285, 908 Gross profit 297, 580 Operating expenses (excluding depreciation) $ 132, 480 Depreciation expense 20, 750 153, 158 Other gains (losses) Loss on sale of equipment (5, 125) Income before taxes 139, 225 Income taxes expense 24, 250 Net income $ 114,975 FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year Assets Cash $ 49, 890 $ 73, 508 Accounts receivable 65, 810 50, 625 Inventory 275,656 251, 808 Prepaid expenses 1, 259 1 , 875 Total current assets 392, 516 377, 808 Equipment 157,580 198, age Accumulated depreciation-Equipment (36, 625 (46, 090) Total assets $ 513, 391 $ 439, 808 Liabilities and Equity Accounts payable $ 53, 141 $ 114,675 Long-term notes payable 54, 750 Total liabilities 128, 141 169, 425 Equity Common stock, $5 par value 162,758 150, 250 Paid-in capital in excess of par, common stock 37,509 Retained earnings 185,080 120, 125 Total liabilities and equity $ 513, $ 439, 808 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $5,125 (details In b). b. Sold equipment costing $46,875, with accumulated depreciation of $30,125, for $11,625 cash. c. Purchased equipment costing $96,375 by paying $30,000 cash and signing a long-term notes payable for the balance. d. Paid $46,125 cash to reduce the long-term notes payable. e. Issued 2,500 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $50,100.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 For Current Year Ended December 31 Cash flows from operating activities 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