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 $ 662,500 Cost of goods sold 301,000 Gross profit Operating expenses (excluding depreciation) $ 148,400 Depreciation expense Other gains (losses) 361,500 36,750 185,150 Loss on sale of equipment (21,125) Income before taxes Income taxes expense Net income 155,225 46,650 $108,575 Assets Cash Accounts receivable. Prepaid expenses Inventory Total current asseta Equipment FORTEN COMPANY Comparative Balance Sheets. December 31 Current Year Prior Year $ 73,900 $ 89,500 89,930 299,656 66,625 267,800 Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Long-term notes payable Total liabilities. Equity Common stock. $5 nar value 1,370 2,215 426,140 464,856 141,500 (44,625) $ 561,731 $ 69,141 71,800 140,941 124,000 (54,000) $ 496,140 $ 138,675 73,950 212,625