$\backslash$table$[[$FORTEN COMPANY$],[$Spreadsheet for Statement of Cash Flows$],[$For Current Year Ended December $31],[,\{$

$\backslash$table$[[$December $31,$ Prior$],[$Year$]]\},$Analysis of Changes,$\backslash$table$[[$December $31,],[$Current Year$]]],[,$Debit,Credit$],[$Balance sheet$-$debit$],[$Cash$,$$$,83,500,,,64,900],[$Accounts receivable,,$60,625,20,245,,80,870],[$Inventory$,,261,800,28,856,,290,656],[$Prepaid expenses,,$2,095,,785,1,310],[$Equipment$,,118,000,,,],[$$$,526,020,,,437,736],[$Balance sheet$-$credit$],[$Accumulated depreciation$-$Equipment,$$,51,000,,,],[$Accounts payable,,$129,675,,,],[$Long$-$term notes payable,,$66,750,,,],[$Common stock, $$5$ par value,,$160,250,,,],[$Paid$-$in capital in excess of par value, common stock,,$0,,,],[$Retained earnings,,$118,345,,,],[$$$,526,020,,,$$$]]\backslash$table$[[$Statement of cash flows,,,$],[$Operating activities,,,$],[$Net income,,,$],[$Increase in accounts receivable,,,$],[$Increase in inventory,,,$],[$Decrease in prepaid expenses,,,$],[$Decrease in accounts payable,,,$],[$Depreciation expense,,,$],[$Loss on sale of equipment,,,$],[$Investing activities,,,$],[$Receipt from sale of equipment,,,$],[$Payment to purchase equipment,,,$],[$Financing activities,,,$],[$Payment on long$-$term notes,,,$],[$Issued common stock for cash,,,$],[$Payment of cash dividends,,,$],[,,,],[$Non cash investing and financing activities,,,$],[$Purchase of equipment financed by long$-$term notes payable,,,$]]$Required information

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$[$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,

$(1)$ 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 COMPANY

Income Statement

For Current Year Ended December $31$

Sales $ $632,500$

Cost of goods sold $295,000$

Gross profit $337,500$

Operating expenses $($excluding depreciation$)$ $ $142,400$

Depreciation expense $30,750173,150$

Other gains $($losses$)$

Loss on sale of equipment $(15,125)$

Income before taxes $149,225$

Income taxes expense $38,250$

Net income $ $110,975$

FORTEN COMPANY

Comparative Balance Sheets

December $31$

Current Year Prior Year

Assets

Cash $ $64,900$ $ $83,500$

Accounts receivable $80,87060,625$

Inventory $290,656261,800$

Prepaid expenses $1,3102,095$

Total current assets $437,736408,020$

Equipment $147,500118,000$

Accumulated depreciation$$Equipment $(41,625)(51,000)$

Total assets $ $543,611$ $ $475,020$

Liabilities and Equity

Accounts payable $ $63,141$ $ $129,675$

Long$-$term notes payable $73,00066,750$

Total liabilities $136,141196,425$

Equity

Common stock, $$5$ par value $177,750160,250$

Paid$-$in capital in excess of par, common stock $52,5000$

Retained earnings $177,220118,345$

Total liabilities and equity $ $543,611$ $ $475,020$

Additional Information on Current Year Transactions

The loss on the cash sale of equipment was $$15,125($details in b$).$

Sold equipment costing $$76,875,$ with accumulated depreciation of $$40,125,$ for $$21,625$ cash.

Purchased equipment costing $$106,375$ by paying $$50,000$ cash and signing a long$-$term notes payable for the balance.

Paid $$50,125$ cash to reduce the long$-$term notes payable.

Issued $3,500$ shares of common stock for $$20$ cash per share.

Declared and paid cash dividends of $$52,100.$

Required:

Prepare a complete statement of cash flows using a spreadsheet using the indirect method.

Note: Enter all amounts as positive values.