Forten Company, a merchandiser, recently completed its calendar-year 2017 operations. For the year, () 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. PORTEN COMPANY Comparative Balance Sheets December 31, 2017 and 2016 2017 2016 Assets 63,400 79,360 289,156 $ 82,500 Cash 59.625 Accounts receivable 260,800 Inventory Prepaid expenses 1,300 2,075 405,000 433,216 148,500 (41,125) Total current assets Equipment Accum. depreciation-Equipment 117,000 (50,500) $471,500 $540,591 Total assets Liabilities and Equity Accounts payable Short-term notes payable $ 62,141 $128,175 7,800 12,700 135,975 57,75 74,841 Total current liabilities Long-term notes payable Total liabilities Equity Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings 60,500 193,725 135,341 159,250 180,750 46,500 178,000 118,525 $540,591 $471,500 Total 1iabilities and equity FORTEN COMPANY Income Statement For Year Ended December 31, 2017 $627,500 Sales 294,000 333,500 Cost of goods sold Gross profit Operating expenses Depreciation expense $ 29, 0 171,150 141,400 Other expenses Other gains (losses) Loss on sale of equipment Income before taxes (14,125) 148,225 36,850 Income taxes expense $111,375 Net income Additional Information on Year 2017 Transactions a The loss on the cash sale of equipment was $14,125 (details in b) Next> 17 of 18