15 1 points 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. FORTEN COMPANY Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit depreciation) Operating expenses (excluding Depreciation expense Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net income $ 662,500 301,000 361,500 148,400 36,750 185,150 (21,125) 155,225 46,650 $ 108,575 FORTEN COMPANY Comparative Balance Sheets December 31 Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets Current Year Prior Year $ $ 73,900 89,500 89,930 66,625 299,656 267,800 2,215 1,370 464,856 426,140 141,500 124,000 (44,625) (54,000) $ $ 561,731 496,140 Liabilities and Equity Accounts payable $ 69,141 Long-term notes payable Total liabilities 138,675 71,800 73,950 140,941 212,625 Equity Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity 186,750 166,250 61,500 172,540 0 117,265 $ 561,731 496,140 $