Forten Company's current year income statement, comparative balance sheets, and additional information follow. 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, and (4) all debits to Accounts Payable reflect cash payments for inventory.

Additional Information on Current Year Transactions

1. The loss on the cash sale of equipment was $12,125 (details in b).
2. Sold equipment costing $67,875, with accumulated depreciation of $37,125, for $18,625 cash.
3. Purchased equipment costing $103,375 by paying $44,000 cash and signing a long-term notes payable for the balance.
4. Paid $48,925 cash to reduce the long-term notes payable.
5. Issued 3,200 shares of common stock for $20 cash per share.
6. Declared and paid cash dividends of $51,500.

Check my wc m. Part 2 of 2 5 points Skipped Required Information [The following information applies to the questions displayed below.] Forten Company's current year income statement, comparative balance sheets, and additional information follow. 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, and (4) all debits to Accounts Payable reflect cash payments for inventory. FORTEN COMPANY Income Statement For Current Year Ended December 31 Sales $ 617, 580 Cost of goods sold 292,80 Gross profit 325,500 Operating expenses (excluding depreciation) $ 139,480 Depreciation expense 27,750 167,150 Other gains (losses) Loss on sale of equipment (12,125) Income before taxes 146,225 Income taxes expense 34,05e Net income $ 112,175 eBook Print References FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year $ 60,400 76,340 286, 156 1,280 424,176 158,580 (40,125) $ 534,551 $ 80,5ee 57,625 258, 800 2,035 398,960 115, een (49,500) $ 464, 460 Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation Equipment Total assets Liabilities and Equity Accounts payable 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 $ 68,141 73,689 133,741 $ 125, 175 63,150 188, 325 173,250 48,888 179,560 $ 534,551 157, 258 a 118,885 $ 464,468 Additional Information on Current Year Transactions e. The loss on the cash sale of equipment was $12,125 (details in b). b. Sold equipment costing $67,875, with accumulated depreciation of $37,125, for $18.625 cash. c. Purchased equipment costing $103.375 by paying $44.000 cash and signing a long-term notes payable for the balance. d. Paid $48,925 cash to reduce the long-term notes payable. e. Issued 3.200 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $51,500. Requlred: Required information Analysis of Changes December 31, Prior Year December 31 Current Year Debit Credit Balance sheet-debit Cash Accounts receivable $ s 60,400 80.500 57,625 258,800 2,035 Inventory Prepaid expenses Equipment 115,000 513,960 $ $ 60,400 $ Balance sheet-credit Accumulated depreciation-Equipment Accounts payable Long-term notes payable Common stock, S5 par value Paid-in capital in excess of par value, common stock Retained earnings 49,500 125,175 63,150 157,250 0 118,885 $ 513.980 $ 0 Statement of cash flows Operating activities Investing activities Financing activities Non cash investing and financing activities Purchase of equipment financed by long-term notes payable s 0 0