2 Sales FORTEN COMPANY Income Statement For Current Year Ended December 31 Cost of goods sold of 2 Gross profit Operating expenses (excluding depreciation) $ 144,400 Depreciation expense Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net income $ 642,500 297,000 345,500 32,750 177,150 (17,125) 151,225 41,050 $ 110,175 Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment FORTEN COMPANY Comparative Balance Sheets Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Long-term notes payable Total liabilities Equity December 31 Current Year Prior Year $ 67,900 83,890 293,656 1,330 446,776 145,500 (42,625) $ 549,651 $ 65,141 72,600 137,741 $ 85,500 62,625 263,800 2,135 414,060 120,000 (52,000) $ 482,060 $ 132,675 69,150 201,825