Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $13,125 (details in b). b. Sold equipment costing $70,875, with accumulated depreciation of $38,125, for $19,625 cash. c. Purchased equipment costing $104,375 by paying $46,000 cash and signing a long-term notes payable for the balance. d. Paid $49,325 cash to reduce the long-term notes payable. e. Issued 3,300 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $51,700. Required: 1. Prepare a complete statement of cash flows using the indirect method for the current year. Note: Amounts to be deducted should be indicated with a minus sign. Note: Amounts to be deducted should be indicated with a minus sign. \begin{tabular}{|c|c|c|c|} \hline Comparat & \begin{tabular}{l} ORTEN COMPANY \\ ative Balance Sheets \\ December 31 \end{tabular} & Current Year & Prior Year \\ \hline \multicolumn{4}{|l|}{ Assets } \\ \hline Cash & & $61,900 & $81,500 \\ \hline Accounts receivable & & 77,850 & 58,625 \\ \hline Inventory & & 287,656 & 259,800 \\ \hline Prepaid expenses & & 1,290 & 2,055 \\ \hline Total current assets & & 428,696 & 401,980 \\ \hline Equipment & & 149,500 & 116,000 \\ \hline Accumulated depreciation-Equipment & & (40,625) & (50,000) \\ \hline Total assets & & $537,571 & $467,980 \\ \hline Liabilities and Equity & & & \\ \hline Accounts payable & & $61,141 & $126,675 \\ \hline Long-term notes payable & & 73,400 & 64,350 \\ \hline Total liabilities & & 134,541 & 191,025 \\ \hline \multicolumn{4}{|l|}{ Equity } \\ \hline Common stock, $5 par value & & 174,750 & 158,250 \\ \hline Paid-in capital in excess of par, & common stock & 49,500 & 0 \\ \hline Retained earnings & & 178,780 & 118,705 \\ \hline Total liabilities and equity & & $537,571 & $467,980 \\ \hline \end{tabular} Required information [The following information applies to the questions displayed below.] Forten Company's current year income statement, comparative balance sheets, and additional information follow. 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, and (4) all debits to Accounts Payable reflect cash payments for inventory. (1) Required information \begin{tabular}{|l|l|l|} \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline Cash flows from investing activities & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline Net increase (decrease) in cash & & \\ \hline Cash balance at December 31, prior year & & \\ \hline Cash balance at December 31, current year & & \\ \hline \end{tabular}