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 $ 607,500 290,000 317,500 $ 137,400 25,750 163,150 (10,125) Income before taxes. Income taxes expense Net income FORTEN COMPANY Comparative Balance Sheets Dacamhar .31 144,225 31,250 $112,975