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 $ 657,500 Cost of goods sold 300,000 Gross profit 357,500 Operating expenses (excluding depreciation) $ 147,400 Depreciation expense 35,750 183,150 Other gains (losses) Loss on sale of equipment (20,125) Income before taxes 154,225 Income taxes expense 45,250 Net income $ 108,975 FORTEN COMPANY Comparative Balance Sh