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 companys income statement and balance sheets follow.

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 $ 52,779S 65,500 54,625 243,800 1,775 70,025 269,656 1,340 Total current assets Equipment Accum. depreciation-Equipment 393,800 149,175 365,700 107,000 (40,150) (47,000) Total assets $ 502,825$425,700 Liabilities and Equity Accounts pavable Short-term notes payable $ 59,375 $109,250 7,400 4,700 Total current liabilities Long-term notes payable 66,775 34,325 113,950 Total liabilities Equity Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings 36,500 150,450 146,750 128,500 502,825 $425,700 101,100 157,750 33,000 210,975 Total liabilities and equity