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, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses. FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment Total assets Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities 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 $ 76,900 92,950 302,656 1,390 473,896 139,500 (45,625) $ 567,771 $ 91,500 68,625 269,800 2,255 432,180 126,000 (55,000) $ 503,180 $141,675 $ 71,141 15,400 9,600 86,541 151,275 56,000 66,750 142,541 218,025 189,750 168,250 64,500 170,980 $ 567,771 116,905 $ 503,180 CARTED Panay Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity FORTEN COMPANY Income Statement For Current Year Ended December 31 Sales $ 672,500 Cost of goods sold 303,000 Grass profit 369,500 Operating expenses Depreciation expense $ 38,750 Other expenses 150,400 189,150 Other gains (losses) Loss on sale of equipment (23,125) Income before taxes Income taxes expense Net income 157,225 49,450 $ 107,775 64,500. 170,980 116,905 $ 567,771 $ 503,180 Help Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $23,125 (details in b). b. Sold equipment costing $100,875, with accumulated depreciation of $48,125, for $29,625 cash. c. Purchased equipment costing $114,375 by paying $66,000 cash and signing a long-term note payable for the balance. d. Borrowed $5,800 cash by signing a short-term note payable. e. Paid $59,125 cash to reduce the long-term notes payable.. f. Issued 4,300 shares of common stock for $20 cash per share. g. Declared and paid cash dividends of $53,700. S 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.) FORTER 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: S Cash flows from investing activities Cash flows from financing activities: 0 0 Required information Cash flows from investing activities $ 0 Cash flows from financing activities: Net increase (decrease) in cash Cash balance at December 31, prior year Cash balance at December 31, current year (A 69 0 0 0 0