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 Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Loss on sale of equipment $ 627,500 294,000 333,500 $ 141,400 29,750 171,150 (14,125) Income before taxes Income taxes expense Net income FORTEN COMPANY Comparative Balance Sheets December 31 148,225 36,850 $111,375 Current Year Prior Year 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 Additional Information on Current Year Transactions $ 63,408 79,360 289,156 $ 82,500 59,625 260,800 1,300 433,216 148,500 (41,125) $ 540,591 $ 62,141 73,200 135,341 176,250 2,075 405,000 117,000 (50,500) $ 471,500 $ 128,175 65,550 193,725 159,250 51,000 0 178,000 118,525 $540,591 $ 471,500