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 $ 73,500 50,625 251,800 1,875 65,810 275,656 1,250 Total current assets Equipment Accum. depreciation-Equipment 392,516 157,500 377,800 108,000 (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 Total current liabilities Long-term notes payable 63,141 65,000 120,675 Total liabilities Equity Common stock, $5 par value Paid-in capital in Retained earnings 48,750 169,425 150,250 120,125 $513,391 $439,800 128,141 162,750 37,500 185,000 excess of par, common stock Total liabilities and equity