2 Part 1 of 2 5 points eBook 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, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses. FORTEN COMPANY Comparative Balance Sheets December 31 Assets Cash Print References Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment Total assets Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities Long-term notes payable Total liabilities Current Year Prior Year $ 61,900 77,850 $ 81,500 287,656 58,625 259,800 1,290 2,055 428,696 401,980 149,500 116,000 (40,625) (50,000) $537,571 $467,980 $ 61,141 $126,675 12,400 7,600 73,541 134,275 61,000 56,750 134,541 191,025 Equity Common stock, $5 par value 174,750 158,250 Paid-in capital in excess of par, common stock 49,500 0 Retained earnings 178,780 118,705 Total liabilities and equity $537,571 $467,980