Required information Use the following information for the Problems below. (Algo) [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, (t) 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. $ 587,500 286,000 301,500 FORTEN COMPANY Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) $ 133,400 Depreciation expense 21,750 Other gains (losses) oss on sale of equipment Income before taxes Income taxes expenso Net income 155, 150 (6.125) 140,225 25,650 $ 114,575 FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year Asseto Cash Accounts receivable Inventory Prepaid expenses Total current assets $ 51,400 67,310 277,156 1,300 397.166 $ 74,500 51,625 252,800 2,025 380.950 FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year Assets Cash $ 51,400 $ 74,500 Accounts receivable 67,310 51,625 Inventory 277, 156 252,800 Prepaid expenses 1,300 2,025 Total current assets 397,166 380,950 Equipment 156,500 109,000 Accumulated depreciation Equipment (37,125) (46,500) Total assets $ 516,541 $ 443, 450 Liabilities and Equity Accounts payable $ 54,141 $ 116,175 Long-term notes payable 74,800 55,950 Total liabilities 128,941 172, 125 Equity Common stock, $5 par value 164,250 151,250 Paid-in capital in excess of par, common stock 39,000 Retained earnings 184,350 120.025 Total liabilities and equity 5.516,541 $ 443,450 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $6,125 (details in b). b. Sold equipment costing $49,875, with accumulated depreciation of $31125, for $12,625 cash. c. Purchased equipment costing $97,375 by paying $32,000 cash and signing a long-term notes payable for the balance. d. Paid $46,525 cash to reduce the long-term notes payable e.issued 2,600 shares of common stock for $20 cash per share. 1. Declared and paid cash dividends of $50,300. 0 Problem 16-3A (Algo) Indirect: Statement of cash flows LO A1, P2, P3 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 Adjustments to reconcile net income to net cash provided by operations Income statement items not affecting cash Changes in current assets and current abilities Cash flows from investing activities Required information rangus in current Und current 4:19 Cash flows from investing activities aces Cash flows from financing activities Net increase (decrease in cash Cash balance at December 31. prior year Cash balance at December 31, current year