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. \begin{tabular}{|c|c|c|} \hline \begin{tabular}{c} FORTEN COMPANY \\ Comparative Balance Sheets \\ December 31 \end{tabular} & Current Year & Prior Year \\ \hline \multicolumn{3}{|l|}{ Assets } \\ \hline Cash & $55,900 & $77,500 \\ \hline Accounts receivable & 71,810 & 54,625 \\ \hline Inventory & 281,656 & 255,800 \\ \hline Prepaid expenses & 1,250 & 1,975 \\ \hline Total current assets & 410,616 & 389,900 \\ \hline Equipment & 153,500 & 112,000 \\ \hline Accumulated depreciation-Equipment & (38,625) & (48,000) \\ \hline Total assets & $525,491 & $453,900 \\ \hline \multicolumn{3}{|l|}{ Liabilities and Equity } \\ \hline Accounts payable & $57,141 & $120,675 \\ \hline Long-term notes payable & 74,200 & 59,550 \\ \hline Total liabilities & 131,341 & 180,225 \\ \hline \multicolumn{3}{|l|}{ Equity } \\ \hline Common stock, \$5 par value & 168,750 & 154,250 \\ \hline Paid-in capital in excess of par, common stock & 43,500 & 0 \\ \hline Retained earnings & 181,900 & 119,425 \\ \hline Total liabilities and equity & $525,491 & $453,900 \\ \hline \end{tabular} Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $9,125 (details in b ). b. Sold equipment costing $58,875, with accumulated depreciation of $34,125, for $15,625 cash. c. Purchased equipment costing $100,375 by paying $38,000 cash and signing a long-term notes payable for the balance. d. Paid $47,725 cash to reduce the long-term notes payable. e. Issued 2,900 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $50,900. \begin{tabular}{|c|c|c|} \hline Net cash provided by operating activities & $ & 147,250 \\ \hline \multicolumn{3}{|l|}{ Cash flows from investing activities } \\ \hline \multicolumn{3}{|l|}{ Cash received from sale of equipment } \\ \hline \multicolumn{3}{|l|}{ Cash paid for equipment } \\ \hline \\ \hline 7 & & 0 \\ \hline \multicolumn{3}{|l|}{ Cash flows from financing activities: } \\ \hline \multicolumn{3}{|l|}{ Cash received from issuing stock } \\ \hline \multicolumn{3}{|l|}{ Cash paid on long-term notes } \\ \hline \multicolumn{3}{|l|}{ Cash paid for dividends } \\ \hline \\ \hline & & 0 \\ \hline Net increase (decrease) in cash & $ & 147,250 \\ \hline \multicolumn{3}{|l|}{ Cash balance at December 31, prior year } \\ \hline Cash balance at December 31 , current year & $ & 147,250 \\ \hline \end{tabular}