Required information [The following information applies to the questions displayed below] 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 Sales Cost of goods sold, Gross profit For Current Year Ended December 31 $ 667,500 302,000 365,500 $ 149,400 37,750 187,150 (22,125) Operating expenses (excluding depreciation) Depreciation expense other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net income 156,225 48,050 $108,175 Assets Cash Accounts receivable. FORTEN COMPANY Comparative Balance Sheets December 31 < Prev Current Year Prior Year $ 75,400 91,440 2 of 2 $ 90,500 67.625 Next FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year Assets Cash Accounts receivable Inventory Prepaid expenses 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 Retained earnings Paid-in capital in excess of par, common stock Total liabilities and equity 91,156 $ 75,400 91,440 $ 90,500 67,625 268,800 1,380 2,235 469,376 140,500 (45,125) 429,160 125,000 (54,500) $564,751 $ 499,660 $ 70,141 $ 140,175 71,600 141,741 75,150 215,325 167,250 188,250 63,000 171,760 $564,751 117,085 $ 499,660 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $22.125 (details in b). b. Sold equipment costing $97,875, with accumulated depreciation of $47,125, for $28.625 cash. c. Purchased equipment costing $113.375 by paying $64,000 cash and signing a long-term notes payable for the balance. d. Paid $52.925 cash to reduce the long-term notes payable. e. Issued 4,200 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $53,500