Use the following information for the Problems below.

[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 company's income statement and balance sheets follow.

FORTEN COMPANY

Comparative Balance Sheets

December 31, 2017 and 201620172016AssetsCash$64,900$83,500Accounts receivable80,87060,625Inventory290,656261,800Prepaid expenses1,3102,095Total current assets437,736408,020Equipment147,500118,000Accum. depreciationEquipment(41,625)(51,000)Total assets$543,611$475,020Liabilities and EquityAccounts payable$63,141$129,675Short-term notes payable13,0008,000Total current liabilities76,141137,675Long-term notes payable60,00058,750Total liabilities136,141196,425EquityCommon stock, $5 par value182,750160,250Paid-in capital in excess of par, common stock47,5000Retained earnings177,220118,345Total liabilities and equity$543,611$475,020

FORTEN COMPANY

Income Statement

For Year Ended December 31, 2017Sales$632,500Cost of goods sold295,000Gross profit337,500Operating expensesDepreciation expense$30,750Other expenses142,400173,150Other gains (losses)Loss on sale of equipment(15,125)Income before taxes149,225Income taxes expense38,250Net income$110,975

Problem 12-3A Indirect: Statement of cash flows LO A1, P1, P2, P3

Additional Information on Year 2017 Transactions

1. The loss on the cash sale of equipment was $15,125 (details inb).
2. Sold equipment costing $76,875, with accumulated depreciation of $40,125, for $21,625 cash.
3. Purchased equipment costing $106,375 by paying $50,000 cash and signing a long-term note payable for the balance.
4. Borrowed $5,000 cash by signing a short-term note payable.
5. Paid $55,125 cash to reduce the long-term notes payable.
6. Issued 3,500 shares of common stock for $20 cash per share.
7. Declared and paid cash dividends of $52,100.

Required:

1.A complete statement of cash flows; report its operating activities using theindirect method.(Amounts to be deducted should be indicated with a minus sign.)