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 60,625 231,800 2,075 78,425 260,656 1,580 Total current assets Equipment Accum. depreciation-Equipment 408,700 161,475 366,000 119,000 (52,750)(59,000) Total assets $517,425 $426,000 Liabilities and Equity Accounts payable Short-term notes payable $ 58,175 $111,050 9,800 5,900 Total current liabilities Long-term notes payable 116,950 67,975 24,725 Total liabilities Equity Common stock, $5 par value Paid-in capital in excess of par Retained earnings 42,500 159,450 149,750 116,800 $517,425 $426,000 92,700 166,750 51,000 206,975 , common stock Total liabilities and equity