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, and (4) all debits to Accounts Payable reflect cash payments for inventory. Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $21,125 (details in b ). b. Sold equipment costing $94,875, with accumulated depreciation of $46,125, for $27,625 cash. c. Purchased equipment costing $112,375 by paying $62,000 cash and signing a long-term notes payable for the balance. d. Paid $52,525 cash to reduce the long-term notes payable. e. Issued 4,100 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $53,300. Required information Answer is not complete. \begin{tabular}{|c|c|c|c|} \hline \multicolumn{4}{|c|}{ FORTEN COMPANY } \\ \hline \multicolumn{4}{|c|}{ Statement of Cash Flows } \\ \hline \multicolumn{4}{|c|}{ For Current Year Ended December 31} \\ \hline \multicolumn{4}{|l|}{ Cash flows from operating activities } \\ \hline Net income & 2 & 108,575 & \\ \hline \multicolumn{4}{|c|}{\begin{tabular}{l} Adjustments to reconcile net income to net cash provided by \\ operations: \end{tabular}} \\ \hline \multicolumn{4}{|l|}{ Income statement items not affecting cash } \\ \hline Loss on disposal of equipment & & 21,125 & \\ \hline Depreciation expense & & 36,750 & \\ \hline \multicolumn{4}{|c|}{ Changes in current assets and current liabilities } \\ \hline Increase in inventory & & & \\ \hline Decrease in prepaid expenses & 2 & & \\ \hline Decrease in accounts payable & & & \\ \hline \multirow[t]{2}{*}{ Increase in accounts receivable } & & & \\ \hline & & & $166,450 \\ \hline \multicolumn{4}{|l|}{ Cash flows from investing activities } \\ \hline Cash paid for equipment & & (62,000)( & \\ \hline \multirow[t]{2}{*}{ Cash received from sale of equipment } & & 27,625 & \\ \hline & & & (34,375) \\ \hline \multicolumn{4}{|l|}{ Cash flows from financing activities: } \\ \hline Cash paid on long-term notes & & (52,525) & \\ \hline Cash received from issuing stock & & 82,000 & \\ \hline \multirow[t]{2}{*}{ Cash paid for dividends } & & (53,300) & \\ \hline & & & (23,825) \\ \hline Net increase (decrease) in cash & & & $108,250 \\ \hline Cash balance at December 31, prior year & & & 89,500 \\ \hline Cash balance at December 31, current year & & & $197,750 \\ \hline \end{tabular}