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. Sales Cost of goods sold Gross profit FORTEN COMPANY Income Statement For Current Year Ended December 31 Operating expenses (excluding depreciation) $ 152,400 Depreciation expense Other gains (losses) Loss on sale of equipment Income before taxes $ 682,500 305,000 377,500 40,750 193,150 (25,125) 159,225 Income taxes expense Net income Assets Cash Accounts receivable 52,250 $ 106,975 FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year $ 79,900 95,970 $ 93,500 70,625 271,800 2,295 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 305,656 1,410 482,936 438,220 137,500 (46,625) 128,000 (56,000) $573,811 $ 510,220 $ 73,141 $ 144,675 71,000 144,141 78,750 223,425 192,750 67,500 169,420 170,250 0 116,545 $ 573,811 $ 510,220