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. $ 582,500 285,000 297,500 PORTEN COMPANY Ines Statement Tor Current Test Endind December 31 Sales Coat of goods mold Groor profit Operating expenses (excluding depreciation) $ 132,400 Depreciation expense 20,750 Other gains (lonnes) Loss on sale of equipment Income before taxes Tncome taxes expense Not income 153,150 15,125) 139,225 24,250 $ 114,975 PORTEN COMPANY Comparative Balance sheets December 31 Assets Cash Accounts receivable Inventory Prepaid expenses Total current annet Iquipment Accumulated depreciation-Iquipment Total assets Liabilities and Equity Accounts payable Long-term notes payable Total liabilities Equity Common stock, 65 par value Paid-in capital in excess of par, common stock Metained earnings Total liabilities and carity Current Year Prior Year $ 49,800 $ 73,500 65,810 50,625 275,656 251,800 1,250 1,875 392,516 377,800 157,500 108,000 (36,625) 146,000) $ 513,391 $ 439,800 $ 53,141 75.000 128, 141 $ 114,675 54.750 169,425 162,750 37,500 185,000 $ 513,391 150,250 0 120, 125 $ 439,800