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. Sales Cost of goods sold Gross profit FORTEN COMPANY Income Statement For Current Year Ended December 31 Operating expenses (excluding depreciation) Depreciation expense Other gains (losses)) Loss on sale of equipment Income before taxes: Income taxes expense Net income $ 607,500 290,000 317,500 $137,400 25,750 163,150 (10,125) 144,225 31,250 $112,975 FORTEN COMPANY Comparative Balance Sheets naramhan 31