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 $ 602,500 305,000 377,500 FORTEN COMPANY Income statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) $ 152,400 Depreciation expense 40,750 Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net income 193, 150 (25.125) 159,225 52,250 $ 106,975 FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year Assets Cash $ 79,900 $ 93,500 Accounts receivable 95,970 70,625 Inventory 305,656 271,800 Prepaid expenses 1,410 2.295 Total current annet 482,936 438,220 Equipment 137,500 128,000 Accumulated depreciation-Iquipment (46,625) (56,000) Total assets $ 573,811 $ 510,220 Liabilities and Equity Accounts payable $ 73,141 $ 144,675 Long-term notes payable 71.000 20.250 Total liabilities 144, 141 223,425 Equity Common stock, 55 par value 192,750 170,250 alduin capital in excess of par, common stock 67.500 0 Retained earnings 169,420 116,505 Total liabilities and equity 3573,011 $ 510,220 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $25,125 (details in b), b. Sold equipment costing $106,875, with accumulated depreciation of $50,125, for $31,625 cash c. Purchased equipment costing $16,375 by paying $70,000 cash and signing a long-term notes payable for the balance. d. Paid $54,125 cash to reduce the long-term notes payable. e. Issued 4,500 shares of common stock for $20 cash per share. 1. Declared and paid cash dividends of $54,100 Required: Prepare a complete statement of cash flows using the direct method (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 $ 0 Cash flows from investing activities 0 Cash flows from financing activities 0 0 Net increase (decrease in cash Cash balance at December 31, prior year