Forten Company, a merchandiser, recently completed its calendar-year 2017 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, 2017 and 2016 2017 2016 $ 63,400 $ 82,500 79,360 59,625 289, 156 260,800 1,300 2,075 433,216 405,000 148,500 117,000 (41,125) (50,500) $540,591 5471,500 Assets Cash recounts receivable Inventory Prepaid expenses Total current assets Equipment Accum. depreciation Equipment Total assets Liabilities and Equity Accounts payable Short-tern notes payable Total current liabilities Long-ter notes payable Total liabilities Equity Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity 5 62,141 $ 128,175 12,700 7.800 74,841 135,975 60,500 57,250 135,341 193,725 180,750 159, 250 46,500 0 178,000 118,525 $540,591 $ 471,500 WY Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate complu FORTEN COMPANY Income Statement For Year Ended December 31, 2017 $ 627,500 294,000 333,500 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net income $ 29,750 141,400 171,150 (14,125) 148, 225 36,850 $ 111,375 Additional Information on Year 2017 Transactions a. The loss on the cash sale of equipment was $14,125 (details in b). b. Sold equipment costing $73,875, with accumulated depreciation of $39,125, for $20,625 cash. c. Purchased equipment costing $105,375 by paying $48,000 cash and signing a long-term note payable for the balance. d. Borrowed $4,900 cash by signing a short-term note payable, e. Paid $54,625 cash to reduce the long-term notes payable. f. Issued 3,400 shares of common stock for $20 cash per share. g. Declared and pold cash dividends of $51,900, Required: 83,650 0 Cash flows from financing activities: 0 83,650 $ Net increase (decrease) in cash Cash balance at beginning of year Cash balance at end of year 83,650