FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year $ 63,400 79, 360 289, 156 1,300 433,216 148,500 (41,125) $540,591 $ 82,500 59,625 260,800 2,075 405,000 117,000 (50,500) $471,500 Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment Total assets Liabilities and Equity Accounts payable Short-term notes payable 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 Total liabilities and equity $ 62, 141 12,700 74,841 60,500 135, 341 $128, 175 7,800 135,975 57,750 193,725 159, 250 176,250 51,000 178,000 $540,591 118,525 $471,500 $627,500 294,000 333,500 FORTEN COMPANY Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 29,750 Other expenses 141,400 Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net income 171,150 (14,125) 148, 225 36,850 $111,375 Additional Information on Current Year 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 paid cash dividends of $51,900. $ 63,400 Balance sheet-debit Cash Accounts receivable Inventory Prepaid expenses Equipment 82,500 59,625 260,800 2,075 117,000 522,000 $ 63,400 $ Balance sheet-credit Accumulated depreciationEquipment Accounts payable Short-term notes payable Long-term notes payable Common stock, $5 par value Paid-in capital in excess of par value, common stock Retained earnings 50,500 128,175 7,800 57,750 159,250 118,525 522,000 $ Statement of cash flows Operating activities