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, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses. FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year $ 72,400 88, 420 298,156 1, 360 460,336 142,500 (44, 125) $558,711 $ 88,500 65,625 266,800 2,195 423, 120 123,000 (53,500) $492,620 Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accum. depreciation Equipment Total assets Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities 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 $ 68,141 14,500 82.641 57,500 140, 141 $137,175 9,000 146,175 63, 750 209,925 185,250 60,000 173,320 $558,711 165,250 0 117,445 $492,620 FORTEN COMPANY Income Statement