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 20,750 153,150 Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net income (5,125) 139,225 24,250 $114,975