Use the following information for the Problems 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	$51,400	$74,500
Accounts receivable	67,310	51,625
Inventory	277,156	252,800
Prepaid expenses	1,300	2,025
Total current assets	397,166	380,950
Equipment	156,500	109,000
Accum. depreciationEquipment	(37,125)	(46,500)
Total assets	$516,541	$443,450
Liabilities and Equity
Accounts payable	$54,141	$116,175
Short-term notes payable	10,300	6,200
Total current liabilities	64,441	122,375
Long-term notes payable	64,500	49,750
Total liabilities	128,941	172,125
Equity
Common stock, $5 par value	164,750	151,250
Paid-in capital in excess of par, common stock	38,500	0
Retained earnings	184,350	120,075
Total liabilities and equity	$516,541	$443,450

FORTEN COMPANY Income Statement For Year Ended December 31, 2017

Sales		$587,500
Cost of goods sold		286,000
Gross profit		301,500
Operating expenses
Depreciation expense	$21,750
Other expenses	133,400	155,150
Other gains (losses)
Loss on sale of equipment		(6,125)
Income before taxes		140,225
Income taxes expense		25,650
Net income		$114,575

Additional Information on Year 2017 Transactions

1. The loss on the cash sale of equipment was $6,125 (details in b).
2. Sold equipment costing $49,875, with accumulated depreciation of $31,125, for $12,625 cash.
3. Purchased equipment costing $97,375 by paying $32,000 cash and signing a long-term note payable for the balance.
4. Borrowed $4,100 cash by signing a short-term note payable.
5. Paid $50,625 cash to reduce the long-term notes payable.
6. Issued 2,600 shares of common stock for $20 cash per share.
7. Declared and paid cash dividends of $50,300.

Required: Prepare a complete statement of cash flows; report its operating activities according to the direct method (Amounts to be deducted should be Indicated with a minus slgn.) FORTEN COMPANY Statement of Cash Flows For Year Ended December 31, 2017 Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Net increase (decrease) in cash Cash balance at beginning of year Cash balance at end of year