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 54,400 76,500 53, 625 280,156 254,800 2, 005 386,930 70,310 ,280 406,146 154,500 111,000 $522,521 $450,430 56,141 $119,175 (38 125) (47,500) Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities Long-term notes payable 10,900575 6,600 67,041 130,541 168,750 125,775 63,50051,750 177,525 Total liabilities Equity Common stock, $5 par value Paid-in capital in excess of par, common stock 153,250 40,500 Retained earnings Total liabilities and equity 182,730 119,655 $522,521 $450,430 FORTEN COMPANY Income Statement For Year Ended December 31, 2017 Sales $597,500