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 $ $582,500$

Cost of goods sold $285,000$

Gross profit $297,500$

Operating expenses $($excluding depreciation$)$ $ $132,400$

Depreciation expense $20,750153,150$

Other gains $($losses$)$

Loss on sale of equipment $(5,125)$

Income before taxes $139,225$

Income taxes expense $24,250$

Net income $ $114,975$

FORTEN COMPANY

Comparative Balance Sheets

December $31$

Current Year Prior Year

Assets

Cash $ $49,800$ $ $73,500$

Accounts receivable $65,81050,625$

Inventory $275,656251,800$

Prepaid expenses $1,2501,875$

Total current assets $392,516377,800$

Equipment $157,500108,000$

Accumulated depreciation$$Equipment $(36,625)(46,000)$

Total assets $ $513,391$ $ $439,800$

Liabilities and Equity

Accounts payable $ $53,141$ $ $114,675$

Long$-$term notes payable $75,00054,750$

Total liabilities $128,141169,425$

Equity

Common stock, $$5$ par value $162,750150,250$

Paid$-$in capital in excess of par, common stock $37,5000$

Retained earnings $185,000120,125$

Total liabilities and equity $ $513,391$ $ $439,800$

Additional Information on Current Year Transactions

The loss on the cash sale of equipment was $$5,125($details in b$).$

Sold equipment costing $$46,875,$ with accumulated depreciation of $$30,125,$ for $$11,625$ cash.

Purchased equipment costing $$96,375$ by paying $$30,000$ cash and signing a long$-$term notes payable for the balance.

Paid $$46,125$ cash to reduce the long$-$term notes payable.

Issued $2,500$ shares of common stock for $$20$ cash per share.

Declared and paid cash dividends of $$50,100.$