Use the following information for the Problems below. $($Algo$)$

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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.

FORTEN COMPANYIncome StatementFor Current Year Ended December $31$Sales$$$ $637,500$Cost of goods sold$296,000$Gross profit$341,500$Operating expenses $($excluding depreciation$)$$ $143,400$Depreciation expense$31,750175,150$Other gains $($losses$)$Loss on sale of equipment$(16,125)$Income before taxes$150,225$Income taxes expense$39,650$Net income$$$ $110,575$

FORTEN COMPANYComparative Balance SheetsDecember $31$Current YearPrior YearAssets$$Cash$ $66,400$$ $84,500$Accounts receivable$82,38061,625$Inventory$292,156262,800$Prepaid expenses$1,3202,115$Total current assets$442,256411,040$Equipment$146,500119,000$Accumulated depreciation$$Equipment$(42,125)(51,500)$Total assets$ $546,631$$ $478,540$Liabilities and Equity$$Accounts payable$ $64,141$$ $131,175$Long$-$term notes payable$72,80067,950$Total liabilities$136,941199,125$Equity$$Common stock, $$5$ par value$179,250161,250$Paid$-$in capital in excess of par, common stock$54,0000$Retained earnings$176,440118,165$Total liabilities and equity$ $546,631$$ $478,540$

Additional Information on Current Year 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 notes payable for the balance.

Paid $$50,525$ 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.$

Problem $16-3$A $($Algo$)$ Indirect: Statement of cash flows LO A$1,$ P$2,$ P$3$

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. $!$

Required information

Use the following information for the Problems below. $($Algo$)$

$[$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.

$\backslash$begin$\{$tabular$\}\{|$c$|$c$|\}$

$\backslash$hline $\backslash$multicolumn$\{2\}\{|$l$|\}\{\backslash$begin$\{$tabular$\}\{$l$\}$

FORTEN COMPANY $\backslash \backslash$

Income Statement $\backslash \backslash$

For Current Year Ended December $31$

$\backslash$end$\{$tabular$\}\}\backslash \backslash$

$\backslash$hline Sales & $\backslash$$ $637,500\backslash \backslash$

$\backslash$hline Cost of goods sold & $296,000\backslash \backslash$

$\backslash$hline Gross profit & $341,500\backslash \backslash$

$\backslash$hline Operating expenses $($excluding depreciation$)\backslash$$ $143,400$ & $\backslash \backslash$

$\backslash$hline Depreciation expense $31,750$ & $175,150\backslash \backslash$

$\backslash$hline Other gains $($losses$)$ & $\backslash \backslash$

$\backslash$hline Loss on sale of equipment & $\backslash ((16,125)\backslash )\backslash \backslash$

$\backslash$hline Income before taxes & $150,225\backslash \backslash$

$\backslash$hline Income taxes expense & $39,650\backslash \backslash$

$\backslash$hline Net income & $\backslash$$ $110,575\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}\backslash$begin$\{$tabular$\}\{|$c$|$c$|$c$|\}$

$\backslash$hline $\backslash$multirow$[$t$]\{2\}\{*\}\{$FORTEN COMPANY Comparative Balance Sheets December $31\}$ & & $\backslash \backslash$

$\backslash$hline & Current Year & Prior Year $\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{3\}\{|$l$|\}\{$Assets$\}\backslash \backslash$

$\backslash$hline Cash & $\backslash$$ $66,400$ & $\backslash$$ $84,500\backslash \backslash$

$\backslash$hline Accounts receivable & $82,380$ & $61,625\backslash \backslash$

$\backslash$hline Inventory & $292,156$ & $262,800\backslash \backslash$

$\backslash$hline Prepaid expenses & $1,320$ & $2,115\backslash \backslash$

$\backslash$hline Total current assets & $442,256$ & $411,040\backslash \backslash$

$\backslash$hline Equipment & $146,500$ & $119,000\backslash \backslash$

$\backslash$hline Accumulated depreciation$-$Equipment & $\backslash ((42,125)\backslash )$ & $\backslash ((51,500)\backslash )\backslash \backslash$

$\backslash$hline Total assets & $\backslash$$ $546,631$ & $\backslash$$ $478,540\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{3\}\{|$l$|\}\{$Liabilities and Equity$\}\backslash \backslash$

$\backslash$hline Accounts payable & $\backslash$$ $64,141$ & $\backslash$$ $131,175\backslash \backslash$

$\backslash$hline Long$-$term notes payable & $72,800$ & $67,950\backslash \backslash$

$\backslash$hline Total liabilities & $136,941$ & $199,125\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{3\}\{|$l$|\}\{$Equity$\}\backslash \backslash$

$\backslash$hline Common stock, $\backslash (\backslash$$ $5\backslash )$ par value & $179,250$ & $161,250\backslash \backslash$

$\backslash$hline Paid$-$in capital in excess of par, common stock & $54,000$ & $0\backslash \backslash$

$\backslash$hline Retained earnings & $176,440$ & $118,165\backslash \backslash$

$\backslash$hline Total liabilities and equity & $\backslash$$ $546,631$ & $\backslash$$ $478,540\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

Additional Information on Current Year Transactions

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

b$.$ Sold equipment costing $\backslash (\backslash$$ $79,875\backslash ),$ with accumulated depreciation of $\backslash (\backslash$$ $41,125\backslash ),$ for $\backslash (\backslash$$ $22,625\backslash )$ cash.

c$.$ Purchased equipment costing $\backslash (\backslash$$ $107,375\backslash )$ by paying $\backslash (\backslash$$ $52,000\backslash )$ cash and signing a long$-$term notes payable for the balance.

d$.$ Paid $\backslash (\backslash$$ $50,525\backslash )$ cash to reduce the long$-$term notes payable.

e$.$ Issued $3,600$ shares of common stock for $\backslash (\backslash$$ $20\backslash )$ cash per share.

f$.$ Declared and paid cash dividends of $\backslash$$$52,300.$

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.