[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 $ 70,900 $ 87,500 Accounts receivable 86,910 64,625 Inventory 296,656 265,800 Prepaid expenses 1,350 2,175 Total current assets 455,816 420,100 Equipment 143,500 122,000 Accum. depreciationEquipment (43,625 ) (53,000 ) Total assets $ 555,691 $ 489,100 Liabilities and Equity Accounts payable $ 67,141 $ 135,675 Short-term notes payable 14,200 8,800 Total current liabilities 81,341 144,475 Long-term notes payable 58,000 62,750 Total liabilities 139,341 207,225 Equity Common stock, $5 par value 190,750 164,250 Paid-in capital in excess of par, common stock 51,500 0 Retained earnings 174,100 117,625 Total liabilities and equity $ 555,691 $ 489,100 FORTEN COMPANY Income Statement For Year Ended December 31, 2017 Sales $ 652,500 Cost of goods sold 299,000 Gross profit 353,500 Operating expenses Depreciation expense $ 34,750 Other expenses 146,400 181,150 Other gains (losses) Loss on sale of equipment (19,125 ) Income before taxes 153,225 Income taxes expense 43,850 Net income $ 109,375 Additional Information on Year 2017 Transactions Net income was $109,375. Accounts receivable increased. Inventory increased. Prepaid expenses decreased. Accounts payable decreased. Depreciation expense was $34,750. Sold equipment costing $88,875, with accumulated depreciation of $44,125, for $25,625 cash. This yielded a loss of $19,125. Purchased equipment costing $110,375 by paying $58,000 cash and (i.) by signing a long-term note payable for the balance. Borrowed $5,400 cash by signing a short-term note payable. Paid $57,125 cash to reduce the long-term notes payable. Issued 3,900 shares of common stock for $20 cash per share. Declared and paid cash dividends of $52,900. Required: Prepare a complete statement of cash flows using a spreadsheet; report its operating activities using the indirect method. (Enter all amounts as positive values.)