Forten Company, a merchandiser, recently completed its calendar-year 2015 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 income statement and balance sheets follow. FORTEN COMPANY Comparative Balance Sheets December 31, 2015 and 2014 2015 2014 Assets Cash Accounts receivable Inventory Prepaid expenses $ 68,039 71,500 60,625 260,656231,800 2,075 78,425 1,580 Total current assets Equipment Accum. depreciation-Equipment 408,700 366,000 119,000 (52,750)(59,000) 161,475 Total assets $517,425426,000 Liabilities and Equity Accounts payable s 58,175S 111.050 Short-term notes payable Total current liabilities Long-term notes payable Total liabilities 9,800 5,900 67,975 116,950 24,72542500 92,700 159,450 149,750 206,975 116,800 $ 517.425 426,000 Equity Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings 166,750 51,000 Total liabilities and equity