FORTEN COMPANY Income Statement For Current Year Ended December 31
Sales				$	647,500
Cost of goods sold					298,000
Gross profit					349,500
Operating expenses
Depreciation expense	$	33,750
Other expenses		145,400			179,150
Other gains (losses)
Loss on sale of equipment					(18,125	)
Income before taxes					152,225
Income taxes expense					42,450
Net income				$	109,775

Additional Information on Current Year Transactions

1. The loss on the cash sale of equipment was $18,125 (details in b).
2. Sold equipment costing $85,875, with accumulated depreciation of $43,125, for $24,625 cash.
3. Purchased equipment costing $109,375 by paying $56,000 cash and signing a long-term note payable for the balance.
4. Borrowed $5,300 cash by signing a short-term note payable.
5. Paid $56,625 cash to reduce the long-term notes payable.
6. Issued 3,800 shares of common stock for $20 cash per share.
7. Declared and paid cash dividends of $52,700.