Income Statement Sales Cost of goods sold Gross profit For Current Year Ended December 31 $ 662,500 301,000 361,500 36,750 185,150 (21,125) Operating expenses (excluding depreciation) $ 148,400 Depreciation expense Other gains (losses). Loss on sale of equipment Income before taxes Income taxes expense Net income FORTEN COMPANY Comparative Balance Sheets December 31 155,225 46,650 $ 108,575 Current Year Prior Year Assets Cash Accounts receivable Prepaid expenses Inventory Total current assets. Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Long-term notes payable Total liabilities Equity Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity Additional Information on Current Year Transactions $ 73,900 89,930 299,656 $ 89,500 66,625 267,800 1,370 2,215 426,140 464,856 141,500 (44,625) $ 561,731 $ 69,141 71,800 140,941 186,750 61,500 172,540 $ 561,731 124,000 (54,000) $ 496,140 $ 138,675 73,950 212,625 166,250 0 117,265 $ 496,140