Required information [The following information applies to the questions displayed below.] Forten Company, a merchandiser, recently completed its calendar-year 2017 operations. 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. The companys income statement and balance sheets follow. FORTEN COMPANY Comparative Balance Sheets December 31, 2017 and 2016 2017 2016 Assets Cash $ 64,900 $ 83,500 Accounts receivable 80,870 60,625 Inventory 290,656 261,800 Prepaid expenses 1,310 2,095 Total current assets 437,736 408,020 Equipment 147,500 118,000 Accum. depreciationEquipment (41,625 ) (51,000 ) Total assets $ 543,611 $ 475,020 Liabilities and Equity Accounts payable $ 63,141 $ 129,675 Short-term notes payable 13,000 8,000 Total current liabilities 76,141 137,675 Long-term notes payable 60,000 58,750 Total liabilities 136,141 196,425 Equity Common stock, $5 par value 182,750 160,250 Paid-in capital in excess of par, common stock 47,500 0 Retained earnings 177,220 118,345 Total liabilities and equity $ 543,611 $ 475,020 FORTEN COMPANY Income Statement For Year Ended December 31, 2017 Sales $ 632,500 Cost of goods sold 295,000 Gross profit 337,500 Operating expenses Depreciation expense $ 30,750 Other expenses 142,400 173,150 Other gains (losses) Loss on sale of equipment (15,125 ) Income before taxes 149,225 Income taxes expense 38,250 Net income $ 110,975 Additional Information on Year 2017 Transactions The loss on the cash sale of equipment was $15,125 (details in b). Sold equipment costing $76,875, with accumulated depreciation of $40,125, for $21,625 cash. Purchased equipment costing $106,375 by paying $50,000 cash and signing a long-term note payable for the balance. Borrowed $5,000 cash by signing a short-term note payable. Paid $55,125 cash to reduce the long-term notes payable. Issued 3,500 shares of common stock for $20 cash per share. Declared and paid cash dividends of $52,100. Required: 1. Prepare a complete statement of cash flows; report its operating activities using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)