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, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses. FORTEN COMPANY Comparative Balance Sheets December 31 Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets. Equipment Accum. depreciation-Equipment Total assets Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities Long-term notes payable Total liabilities Current Year Prior Year $ 67,900 83,890 $ 85,500 293,656 62,625 263,800 1,330 2,135 446,776 145,500 414,060 120,000 (42,625) (52,000) $549,651 $482,060 $ 65,141 $132,675 13,600 8,400 78,741 141,075 59,000 60,750 137,741 201,825 Equity Common stock, $5 par value 180,750 162,250 Paid-in capital in excess of par, common stock 55,500 0 Retained earnings 175,660 117,985 Total liabilities and equity $549,651 $482,060 FORTEN COMPANY Income Statement For Current Year Ended December 31 Sales $642,500 Cost of goods sold Gross profit 297,000 345,500 Operating expenses Depreciation expense Other expenses $ 32,750 144,400 177,150