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 $ 49,800 S 73,500 50,625 275,656 251,800 1,875 65,810 1,250 392,516 Total current assets Equipment Accum. depreciation-Equipment 377,800 157,500108,000 (36,625)(46,000) Total assets $513,391 439,800 Liabilities and Equity Accounts payable Short-term notes payable $ 53,141 114,675 10,000 6,000 120,675 Total current liabilities Long-term notes payable 63,141 65,000 48,750 169,425 162,750150250 185,000120,125 $ 513.391 $439,800 128,141 Total liabilities Equity Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings 37,500 Total liabilities and equity