Sales Cost of goods sold Gross profit FORTE COMPANY Income Statement For Current Year Ended December 31 Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Loss on sale of equipment Income before taxes $ 582,500 285,000 297,500 $ 132,400 20,750 153,150 (5,125) 139,225 Income taxes expense Net income Assets es Cash Accounts receivable. Inventory Prepaid expenses 24,250 $ 114,975 FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year $ 49,800 65,810 275,656 $ 73,500 50,625 251,800 Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Long-term notes payable Total liabilities Equity Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity Additional Information on Current Year Transactions 1,250 1,875 392,516 157,500 (36,625) 377,800 108,000 (46,000) $ 513,391 $ 53,141 75,000 $ 439,800 $ 114,675 54,750 169,425 150,250 128,141 162,750 37,500 185,000 $ 513,391 0 120,125 $ 439,800 Total liabilities and equity Additional Information on Current Year Transactions $ 513,391 $439,800 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. Required: Prepare a complete statement of cash flows using the direct method. (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 $ 0 25 Cash flows from investing activities Cash flows from financing activities Net increase (decrease) in cash Cash balance at December 31, prior year Cash balance at December 31, current year 0 0 $ 0 $ 0