Forten Company, a merchandiser, recently completed its calendar-year 2013 operations. 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. The company's balance sheets and income statement follow FORTEN COMPANY Comparative Balance Sheets December 31, 2013 and 2012 2013 2012 Assets Cash Accounts receivable Merchandise inventory Prepaid expenses Equipment Accum. depreciation-Equipment $ 49,800 $73,500 50,625 251,800 1,875 108,000 (36,625 (46,000) 65,810 275,656 1,250 157,500 Total assets $513,391 $439,800 Liabilities and Equity Accounts payabl Short-term notes payable Long-term notes payable Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings $53,141 $ 114,675 6,000 48,750 150,250 10,000 65,000 162,750 37,500 185,000 120,125 Total liabilities and equity $513,391 $439,800