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		$	54,400					$	76,500
Accounts receivable			70,310						53,625
Inventory			280,156						254,800
Prepaid expenses			1,280						2,005
Total current assets			406,146						386,930
Equipment			154,500						111,000
Accum. depreciationEquipment			(38,125	)					(47,500	)
Total assets		$	522,521					$	450,430
Liabilities and Equity
Accounts payable		$	56,141					$	119,175
Short-term notes payable			10,900						6,600
Total current liabilities			67,041						125,775
Long-term notes payable			63,500						51,750
Total liabilities			130,541						177,525
Equity
Common stock, $5 par value			167,250						153,250
Paid-in capital in excess of par, common stock			42,000						0
Retained earnings			182,730						119,655
Total liabilities and equity		$	522,521					$	450,430

FORTEN COMPANY Income Statement For Current Year Ended December 31
Sales				$	597,500
Cost of goods sold					288,000
Gross profit					309,500
Operating expenses
Depreciation expense	$	23,750
Other expenses		135,400			159,150
Other gains (losses)
Loss on sale of equipment					(8,125	)
Income before taxes					142,225
Income taxes expense					28,450
Net income				$	113,775

Additional Information on Current Year Transactions

1. The loss on the cash sale of equipment was $8,125 (details in b).
2. Sold equipment costing $55,875, with accumulated depreciation of $33,125, for $14,625 cash.
3. Purchased equipment costing $99,375 by paying $36,000 cash and signing a long-term note payable for the balance.
4. Borrowed $4,300 cash by signing a short-term note payable.
5. Paid $51,625 cash to reduce the long-term notes payable.
6. Issued 2,800 shares of common stock for $20 cash per share.
7. Declared and paid cash dividends of $50,700.

Prepare a complete statement of cash flows using a spreadsheet using the indirect method. (Enter all amounts as positive values.) FORTEN COMPANY Spreadsheet for Statement of Cash Flows For Current Year Ended December 31 Analysis of Changes December 31, Prior Debit Credit Cedit Year December 31, Current Year $ 54,400 Balance sheetdebit Cash Accounts receivable Inventory Prepaid expenses Equipment 76,500 53,625 254,800 2,005 111,000 497,930 Balance sheet_credit Accumulated depreciation Equipment Accounts payable Short-term notes payable Long-term notes payable Common stock, $5 par value Paid-in capital in excess of par value, common stock Retained earnings 47,500 119,175 6,600 51,750 153,250 119,655 497,930 Statement of cash flows Operating activities Statement of cash flows Operating activities Investing activities Financing activities Non cash investing and financing activities Purchase of equipment financed by long-term note payable