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 $ 652,500 Cost of goods sold 299,000 Gross profit Operating expenses (excluding depreciation) $ 146,400 Depreciation expense Other gains (losses). 353,500 34,750 181,150 Loss on sale of equipment Income before taxes. (19,125) Income taxes expense Net income 153,225 43,850 $ 109,375 FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year $ 70,900 86,910 296,656 $ 87,500 64,625 265,800 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 1,350 2,175 455,816 143,500 (43,625) $ 555,691 420,100 122,000 (53,000) $ 489,100 $ 135,675 71,550 207,225 $ 67,141 72,200 139,341 183,750 58,500 174,100 117,625 $ 555,691 $ 489,100 164,250 0 a. The loss on the cash sale of equipment was $19,125 (details in b). b. Sold equipment costing $88,875, with accumulated depreciation of $44,125, for $25,625 cash. c. Purchased equipment costing $110,375 by paying $58,000 cash and signing a long-term notes payable for the balance. d. Paid $51,725 cash to reduce the long-term notes payable. e. Issued 3,900 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $52,900.