[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 Receivadele reflect cash receipts from customers, (3) all purchases of inventory are on credit, and (4) all debits to Accounts Payable refiect cash payments for irventory. Additionelliniormetion on Current Yeor Tronsections 6. The 1055 on the eash sale of equipment was $20.125 (details in b). b. Sold equipment costing $91.875, with accumulated depreciation af $45.125, for $26.625 cash. c. Purchased equipment costing $111.375 by paying $60.000 cash and signing a long-terminotes payable for the balance. d. Paid \$52:125 cash toreduce the long term notes payable. e. Issued 4,000 shares of common stock for \$20 cash per share. 1. Declared and paid cash dividends of $53,100. 1. Prepare a complete statement of cash fiows using the indirect method for the current year. (Amo ndlcated with o minus slgn.) FORTEN COMPANY Statement of Cash Flows For Current Year Ended December 31 Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operations: Income statement items not affecting cash Depreciation expense 35,750 Loss on disposal of equipment Changes in current assets and current liabilities Increase in accounts receivable Increase in inventory Decrease in prepaid expenses Decrease in accounts payable $164.850 Cash fows from investing activilies Cash received from sale of equipment Cash paid for equipment. Cash flows from financing activities: Cash paid on long-term notes Cash received from issuing stock Cash paid for dividends Net increase (decrease) in cash Cash balance at December 31, prior year Cash balance at December 31, current year $164,850