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 Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment Total assets $ 52,900 68,810 278,656 1,270 401,636 155, 500 37,625 75,500 52,625 253,800 1,995 383,920 110,000 47,000 s 519,511 446,920 Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities Long-term notes payable Total 1iabilities Equity Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity $ 55,141 117,675 6,400 124,075 64,00050,750 174,825 10,600 65,741 129,741 166,750 152,25% 39,500 183,520 119,845 519,511 446,920 FORTEN COMPANY Income Statement For Year Ended December 31, 2017 Sales Cost of goods sold Gross profit Operating expenses $592,500 287,000 305, 500 Depreciation expense Other expenses $ 22,750 134,400 157,150 Other gains (losses)