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 $ 592,500 Cost of goods sold 287,000 Gross profit 305,500 Operating expenses (excluding depreciation) S 134,499 Depreciation expense 22,750 157,158 Other gains (losses) Loss on sale of equipment (1.125 Income before taxes 141, 225 Income taxes expense 27,85e Net income 5 114,175 FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year Assets -Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation Equipment Total assets Liabilities and Equity Accounts payable Long-ters notes payable Total 1labilities Equity Common stock, 55 par value Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity $ 52,900 68,810 278,656 1,270 401,636 155,500 (37.625) 5 519,511 $ 75,5ee 52,625 253.800 1,995 383,928 110,000 (47,800) $ 406,928 $ 55,141 74,600 129,741 $ 117,675 57,250 174,825 152,250 165,758 48,500 183,528 5 519,511 119,845 $ 446,920 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was 57125 (details in bj. b. Sold equipment costing 552,875, with accumulated depreciation of 532.125, for 513,625 cash c. Purchased equipment costing $98.375 by paying $34.000 cash and signing a long-term notes payable for the balance d. Paid $46,925 cash to reduce the long-term notes payable e.issued 2700 shares of common stock for $20 cash per share 1. Declared and paid cash dividends of $50,500 Prey 1 of 9 Required information 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 Staternent of Cash Flows For Current Year Ended December 31 Cash flows from operating activities Net income 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 Prey 1 of 9 H