Saved Help Forten Company, a merchandiser, recently completed its calendar-year 2018 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 company's income statement, balance sheets, and additional information follow FORTEN COMPANY Comparative Balance Sheets December 31, 2018 and 2017 2018 2017 $ 60,400 76,340 285,156 1,280 424,176 150, 500 (1125) $ 534,551 $ 80,500 57,625 258,800 2.035 398,960 115,000 149. see) $ 464, 460 Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accun depreciation Equipment Total assets Liabilities and Equity Accounts payable Short-tern notes payable Total current liabilities Long-ters 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 $ 60,141 12.100 $125,175 7,480 132,575 55,75e 188,325 61.500 133,241 160,750 176,75 48.000 176,060 $ 534,551 115,385 $ 464,460 FORTEN COMPANY Income Statement for Year Ended December 31, 2018 Sales Cost of goods sold Gross profit $ 617.500 292.00 325,500 Activat Go to Settin search O i . F2 73 Prisen FS F6 Home 9 End FO Pa & 3 5 6 7 8 9 0 E R Y P C PB Saved 59:07 $ 617,500 292,800 325,500 FORTEN COMPANY Income Statement For Year Ended December 31, 2018 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 27,750 Other expenses 139,40e Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net income 167,150 (12,125) 146,225 34,05e $ 112,175 Additional Information on Year 2018 Transactions a. The loss on the cash sale of equipment was $12,125 (details in b). b. Sold equipment costing $67,875, with accumulated depreciation of $37125, for $18,625 cash. c. Purchased equipment costing $103.375 by paying $44.000 cash and signing a long-term note payable for th d. Borrowed $4.700 cash by signing a short-term note payable. e. Paid $53,625 cash to reduce the long-term notes payable. f. Issued 3,200 shares of common stock for $20 cash per share. g. Declared and paid cash dividends of $51,500. Required: 1. Prepare a complete statement of cash flows, report its operating activities using the indirect method (Amoun should be indicated with a minus sign.) FORTEN COMPANY Statement of Cash Flows ere to search O RI DII Pitsch Home F3 F FS F6 FT FB % & $ 4 2 3 5 6. 7 8 9