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		$	69,400					$	86,500
Accounts receivable			85,400						63,625
Inventory			295,156						264,800
Prepaid expenses			1,340						2,155
Total current assets			451,296						417,080
Equipment			144,500						121,000
Accum. depreciationEquipment			(43,125	)					(52,500	)
Total assets		$	552,671					$	485,580
Liabilities and Equity
Accounts payable		$	66,141					$	134,175
Short-term notes payable			13,900						8,600
Total current liabilities			80,041						142,775
Long-term notes payable			58,500						61,750
Total liabilities			138,541						204,525
Equity
Common stock, $5 par value			182,250						163,250
Paid-in capital in excess of par, common stock			57,000						0
Retained earnings			174,880						117,805
Total liabilities and equity		$	552,671					$	485,580

FORTEN COMPANY Income Statement For Current Year Ended December 31
Sales				$	647,500
Cost of goods sold					298,000
Gross profit					349,500
Operating expenses
Depreciation expense	$	33,750
Other expenses		145,400			179,150
Other gains (losses)
Loss on sale of equipment					(18,125	)
Income before taxes					152,225
Income taxes expense					42,450
Net income				$	109,775

Additional Information on Current Year Transactions

1. The loss on the cash sale of equipment was $18,125 (details in b).
2. Sold equipment costing $85,875, with accumulated depreciation of $43,125, for $24,625 cash.
3. Purchased equipment costing $109,375 by paying $56,000 cash and signing a long-term note payable for the balance.
4. Borrowed $5,300 cash by signing a short-term note payable.
5. Paid $56,625 cash to reduce the long-term notes payable.
6. Issued 3,800 shares of common stock for $20 cash per share.
7. Declared and paid cash dividends of $52,700.

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
Net income	$109,775
Adjustments to reconcile net income to net cash provided by operations:
Accounts receivable increase	(21,775)
Inventory increase	(30,356)
Prepaid expense decrease	815
Accounts payable decrease	(68,034)
Depreciation expense	33,750
Loss on disposal of equipment
Net cash provided by operating activities		$24,175
Cash flows from investing activities
Cash received from sale of equipment	24,625
Cash paid for equipment
Net cash used in investing activities		24,625
Cash flows from financing activities:
Cash borrowed on short-term note
Cash paid on long-term note
Cash received from issuing stock
Cash paid for dividends
Net cash used in financing activities		0
Net increase (decrease) in cash		$48,800
Cash balance at December 31, prior year
Cash balance at December 31, current year		$48,800

Can someone please help me figure out the rest of the answers?