Required information 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 2016
2017 2016
Assets
Cash$66,400 $84,500
Accounts receivable 82,380 61,625
Inventory 292,156 262,800
Prepaid expenses 1,320 2,115
Total current assets 442,256 411,040
Equipment 146,500 119,000
Accum. depreciation—Equipment (42,125) (51,500)
Total assets$546,631 $478,540
Liabilities and Equity
Accounts payable$64,141 $131,175
Short-term notes payable 13,300 8,200
Total current liabilities 77,441 139,375
Long-term notes payable 59,500 59,750
Total liabilities 136,941 199,125
Equity
Common stock, $5 par value 184,750 161,250
Paid-in capital in excess of par, common stock 48,500 0
Retained earnings 176,440 118,165
Total liabilities and equity$546,631 $478,540

FORTEN COMPANY
Income Statement
For Year Ended December 31, 2017
Sales $637,500
Cost of goods sold 296,000
Gross profit 341,500
Operating expenses
Depreciation expense$31,750
Other expenses 143,400 175,150
Other gains (losses)
Loss on sale of equipment (16,125)
Income before taxes 150,225
Income taxes expense 39,650
Net income $110,575
Problem 12-3A Indirect: Statement of cash flows LO A1, P1, P2, P3

Additional Information on Year 2017 Transactions

The loss on the cash sale of equipment was $16,125 (details in b).

Sold equipment costing $79,875, with accumulated depreciation of $41,125, for $22,625 cash.

Purchased equipment costing $107,375 by paying $52,000 cash and signing a long-term note payable for the balance.

Borrowed $5,100 cash by signing a short-term note payable.

Paid $55,625 cash to reduce the long-term notes payable.

Issued 3,600 shares of common stock for $20 cash per share.

Declared and paid cash dividends of $52,300.

Required:
1. Prepare a complete statement of cash flows; report its operating activities using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)

FORTEN COMPANY
Statement of Cash Flows
For Year Ended December 31, 2017
Cash flows from operating activities
Adjustments to reconcile net income to net cash provided by operations:
$0
Cash flows from investing activities
0
Cash flows from financing activities:
0
Net increase (decrease) in cash$0
Cash balance at beginning of year
Cash balance at end of year$0