Refer to Forten Company's financial statements and related information in Problem.

In problem

Additional Information on Year 2015 Transactions
a. The loss on the cash sale of equipment was $5,125 (details in b).
b. Sold equipment costing $46,875, with accumulated depreciation of $30,125, for $11,625 cash.
c. Purchased equipment costing $96,375 by paying $30,000 cash and signing a long-term note payable for the balance.
d. Borrowed $4,000 cash by signing a short-term note payable.
e. Paid $50,125 cash to reduce the long-term notes payable.
f. Issued 2,500 shares of common stock for $20 cash per share.
g. Declared and paid cash dividends of $50,100.

Required
Prepare a complete statement of cash flows; report its operating activities according to the direct method. Disclose any noncash investing and financing activities in a note.

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FORTEN COMPANY Comparative Balance Sheets December 31,2015 and 2014 2015 2014 Assets Cash . Accounts receivable .$ 49,800 73,500 50,625 65,810 Prepaid expen Total current assets. Equipment Accum. depreciation Equipment... 12501.875 392,516 377,800 157,500 108,000 (36,625) (46,000) $13,39 $439,800 ses FORTEN COMPANY Income Statement For Year Ended December 31,2015 Total assets ...$ Liabilities and Equity Sales $582,500 Accounts payable 6,000 120,675 65,000 48,750 128,14 169,425 Cost of goods sold.. . 285,000 297,500 Short-term notes payable Total current liabilities Long-term notes payable Total liabilities 0,000 . 63,141 Operating expenses Depreciation expense20,750 Other expenses Other gains (losses) 132,400 153,150 Common stock, $5 par value·····.. Paid-in capital in excess 162,750 150,250 Loss on sale of equipment Income before taxes . .. Income taxes expcnsc. Net income 39,225 of par, common stock .37,500 24,250 Retained earnings . 185,000 120125 $513,3 $439,800 ._. ..1 4975 Total liabilities and equity