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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 $ $612,500$

Cost of goods sold $291,000$

Gross profit $321,500$

Operating expenses $($excluding depreciation$)$ $ $138,400$

Depreciation expense $26,750165,150$

Other gains $($losses$)$

Loss on sale of equipment $(11,125)$

Income before taxes $145,225$

Income taxes expense $32,650$

Net income $ $112,575$

FORTEN COMPANY

Comparative Balance Sheets

December $31$

Current Year Prior Year

Assets

Cash $ $58,900$ $ $79,500$

Accounts receivable $74,83056,625$

Inventory $284,656257,800$

Prepaid expenses $1,2702,015$

Total current assets $419,656395,940$

Equipment $151,500114,000$

Accumulated depreciation$$Equipment $(39,625)(49,000)$

Total assets $ $531,531$ $ $460,940$

Liabilities and Equity

Accounts payable $ $59,141$ $ $123,675$

Long$-$term notes payable $73,80061,950$

Total liabilities $132,941185,625$

Equity

Common stock, $$5$ par value $171,750156,250$

Paid$-$in capital in excess of par, common stock $46,5000$

Retained earnings $180,340119,065$

Total liabilities and equity $ $531,531$ $ $460,940$

Additional Information on Current Year Transactions

The loss on the cash sale of equipment was $$11,125($details in b$).$

Sold equipment costing $$64,875,$ with accumulated depreciation of $$36,125,$ for $$17,625$ cash.

Purchased equipment costing $$102,375$ by paying $$42,000$ cash and signing a long$-$term notes payable for the balance.

Paid $$48,525$ cash to reduce the long$-$term notes payable.

Issued $3,100$ shares of common stock for $$20$ cash per share.

Declared and paid cash dividends of $$51,300.$

Problem $12-3$A $($Algo$)$ Indirect: Statement of cash flows LO A$1,$ P$2,$ P$3$

Required:

$1.$ Prepare a complete statement of cash flows using the indirect method for the current year.

Note: Amounts to be deducted should be indicated with a minus sign.

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