?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 companys 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 $ 66,379$ 70,500 59,625 233,800 2,025 117,000 (57,000) 77,025 262,156 1,540 159,425 (50,650) Total assets 515,875 $425,950 Liabilities and Equity Accounts payable Short-term notes payable Long-term notes payable Common stock, $5 par value Paid-in capital in excess of par, common stoclk Retained earnings $ 58,375 $110,750 5,700 41,500 149,250 0 118,750 9,400 25,825 165,250 48,000 209,025 Total liabilities and equity 515,875 $425,950