This portion of your examination requires your preparation of a Statement of Cash Flows. Please prepare your submission in a format of your choosing and, when complete, upload your work to Blackboard. Thank you for your attention to these instructions and let me know if you have questions, need additional information, or wish to discuss this assignment further. 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, (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. FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year Assets Cash 49,800 $ 73,500 Accounts receivable 65,810 50.625 Inventory 275,656 251,800 Prepaid expenses 1,250 1,875 Total current assets 392,516 377.800 Equipment 157,500 108,000 Accumulated depreciation-Equipment (36,625) (46,000) Total assets $ 513,391 $439,800 Liabilities and Equity Accounts payable $ 53,141 $114.675 Short-term notes payable 10,000 6,000 Total current liabilities 63,141 120.675 Long-term notes payable 65,000 48,750 Total liabilities 128,141 169,425 Equity Common stock, $5 par value 162,750 150,250 Paid-in capital in excess of par, common stock 37,500 Retained earnings 185,000 120.125 Total liabilities and equity $ 513,391 $439,800 FORTEN COMPANY Income Statement For Current Year Ended December 31 Sales $582,500 Cost of goods sold 285,000 Gross profit 297,500 Operating expenses Depreciation expense $ 20,750 Other expenses 132,400 153,150 Other gains (losses) Loss on sale of equipment (5,125) Income before taxes 139,225 Income taxes expense 24,250 Net income $114,975