Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $10,125 (details in b). b. Sold equipment costing $61,875, with accumulated depreciation of $35,125, for $16,625 cash. c. Purchased equipment costing $101,375 by paying $40,000 cash and signing a long-term notes payable for the balance. d. Paid $48,125 cash to reduce the long-term notes payable. e. Issued 3,000 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $51,100. FORTEN COMPANY Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net income \begin{tabular}{rr} & $607,500 \\ & 290,000 \\ \cline { 2 - 2 } & 317,500 \\ $137,400 & \\ 25,750 & 163,150 \\ & (10,125) \\ \hline & 144,225 \\ 31,250 \\ \hline$112,975 \\ \hline \end{tabular} FORTEN COMPANY Comparative Batance Sheets December 31 Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Long-term notes payable Total liabilities Equity Common stock, $5 par value paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity Current Year Prior Year \begin{tabular}{rr} $57,400 & $78,500 \\ 73,320 & 55,625 \\ 283,156 & 256,800 \\ 1,260 & 1,995 \\ \hline 415,136 & 392,920 \\ 152,500 & 113,000 \\ (39,125) & (48,500) \\ \hline$528,511 & $457,420 \\ \hline$58,141 & $122,175 \\ 74,000 & 60,750 \\ \hline 132,141 & 182,925 \\ 170,250 & 155,250 \\ 45,000 & 0 \\ 181,120 & 119,245 \\ \hline$528,511 & $457,420 \\ \hline \end{tabular}