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 COMPANY Income Statement For Current Year Endod December 31 Sales. Cost of goods sold Gross profit.. Operating expenses (excluding depreciation).. $132.400 Depreciation expense Osher gsins fosses) Loss on sale of equipment, Income for taxes....... Income taxas expense..... Net income... FORTEN COMPANY Comparative Balance Sheets At December 31 Current Year Prior Year $582,500 Assets 285,000 Cash... 297.500 Accounts receivable Inventory. 20,750 153,150 Prepaid expenses Total current assets. (5.125) Equipment... 139,225 24.250 Accum. depreciation-Equipment Total assots $114,975 $ 49,800 65,810 $ 73,500 50,625 275.656 251,800 1,250 1,875 392,516 377,800 157,500 108,000 (36,625) (46,000) $513,391 $439,800 Liabilities and Equity Accounts payable. $ 53,141 $114,675 Long-term notes payable 75.000 54.750 Total liabilities.. 128,141 169,425 Equity Common stock, $5 par value. 162,750 150,250 Paid-in capital in excess of par, common stock... 37,500 Retained eamings.... 185,000 120,125 Total liabilities and equity. $513.391 $439,000 Additional Information on Current Year Transactions The loss on the cash sale of equipment was $5,125 details in by 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 notes payable for the balance." d. Paid $46,125 cash to reduce the long-tam notes payable. bssued 2.500 shares of common stock for $20 cash per share. 1. Declared and paid cash dividends of $50,100. Required 1. Prepare a complete statement of cash flows using the indirect method for the current year. Disclose any noncash investing and financing activities in a note. Check Cash from operating activities, $40,900 Analysis Component 2. Analyze and discuss the statement of cash flows prepared in part 1, giving special attention to the wisdom of the cash dividend payment.