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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 COMPANYIncome StatementFor Current Year Ended December 31Sales $ 582,500Cost of goods sold 285,000Gross profit 297,500Operating expenses (excluding depreciation)$ 132,400 Depreciation expense20,750153,150Other gains (losses) Loss on sale of equipment (5,125)Income before taxes 139,225Income taxes expense 24,250Net income $ 114,975FORTEN COMPANYComparative Balance SheetsDecember 31 Current YearPrior YearAssets Cash$ 49,800$ 73,500Accounts receivable65,81050,625Inventory275,656251,800Prepaid expenses1,2501,875Total current assets392,516377,800Equipment157,500108,000Accumulated depreciationEquipment(36,625)(46,000)Total assets$ 513,391$ 439,800Liabilities and Equity Accounts payable$ 53,141$ 114,675Long-term notes payable75,00054,750Total liabilities128,141169,425Equity Common stock, $5 par value162,750150,250Paid-in capital in excess of par, common stock37,5000Retained earnings185,000120,125Total liabilities and equity$ 513,391$ 439,800

Additional Information on Current Year Transactions

1. The loss on the cash sale of equipment was $5,125 (details in b).
2. Sold equipment costing $46,875, with accumulated depreciation of $30,125, for $11,625 cash.
3. Purchased equipment costing $96,375 by paying $30,000 cash and signing a long-term notes payable for the balance.
4. Paid $46,125 cash to reduce the long-term notes payable.
5. Issued 2,500 shares of common stock for $20 cash per share.
6. Declared and paid cash dividends of $50,100.

Problem 12-3A (Static) 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.

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

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. Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $5,125 (details in b ). b. Sold equipment costing $46,875, with accumulated depreciation of $30,125, for $11,625 cash. c. Purchased equipment costing $96,375 by paying $30,000 cash and signing a long-term notes payable for the balance. d. Paid $46,125 cash to reduce the long-term notes payable. e. Issued 2,500 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $50,100. FORTEN COMPANY Statement of Cash Flows For Current Year Ended December 31