FORTEN COMPANY Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Loss on sale of equipment $ 582,500 285,000 297,500 $ 132,400 20,750 153,150 (5,125) Income before taxes Income taxes expense Net income FORTEN COMPANY Comparative Balance Sheets December 31 Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity 139,225 24,250 $ 114,975 Current Year Prior Year $ 49,800 65,810 275,656 1,250 392,516 157,500 (36,625) $ 513,391 $ 73,500 58,625 251,800 1,875 377,800 108,000 (46,000) $ 439,800 Accounts payable $ 53,141 $ 114,675 Long-term notes payable 75,000 54,750 Total liabilities 128,141 169,425 Equity Common stock, $5 par value: 162,750 150,250 Paid-in capital in excess of par, common stock 37,500 0 Retained earnings 185,000 120,125