Required information

Use the following information for the Problems below.

[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	$	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
Accum. depreciationEquipment		(37,125	)			(46,500	)
Total assets	$	516,541			$	443,450
Liabilities and Equity
Accounts payable	$	54,141			$	116,175
Short-term notes payable		10,300				6,200
Total current liabilities		64,441				122,375
Long-term notes payable		64,500				49,750
Total liabilities		128,941				172,125
Equity
Common stock, $5 par value		164,750				151,250
Paid-in capital in excess of par, common stock		38,500				0
Retained earnings		184,350				120,075
Total liabilities and equity	$	516,541			$	443,450

FORTEN COMPANY Income Statement For Year Ended December 31, 2017
Sales				$	587,500
Cost of goods sold					286,000
Gross profit					301,500
Operating expenses
Depreciation expense	$	21,750
Other expenses		133,400			155,150
Other gains (losses)
Loss on sale of equipment					(6,125	)
Income before taxes					140,225
Income taxes expense					25,650
Net income				$	114,575

Problem 12-3A Indirect: Statement of cash flows LO A1, P1, P2, P3

Additional Information on Year 2017 Transactions

1. The loss on the cash sale of equipment was $6,125 (details in b).
2. Sold equipment costing $49,875, with accumulated depreciation of $31,125, for $12,625 cash.
3. Purchased equipment costing $97,375 by paying $32,000 cash and signing a long-term note payable for the balance.
4. Borrowed $4,100 cash by signing a short-term note payable.
5. Paid $50,625 cash to reduce the long-term notes payable.
6. Issued 2,600 shares of common stock for $20 cash per share.
7. Declared and paid cash dividends of $50,300.

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.)