0-Ch 12) i Saved 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. FORTEN COMPANY Income Statement For Current Year Ended December 31 Sales $ 657,500 Cost of goods sold 300,000 Gross profit Operating expenses (excluding depreciation) $ 147,400 Depreciation expense Other gains (losses) 357,500 35,750 183,150 Loss on sale of equipment Income before taxes (20,125) Income taxes expense Net income FORTEN COMPANY Comparative Balance Sheeta December 31 154,225 45,250 $108,975 Assets Cash Inventory Accounts receivable Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets Current Year Prior Year $ 72,400 88,420 298,156 $88,500 65,625 266,800 1,360 2,195 460,336 423,120 142,500 123,000 (44,125) (53,500) $558,711 $492,620 Liabilities and Equity Accounts payable $68,141 $137,175 Long-term notes payable 72,000 Total liabilities 140,141 72,750 209,925 Equity Common stock, $5 par value 185,250 165,250