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 For Current Year Ended December 33 Sales $ 677,500 Cost of goods sold 304,000 Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Loss on sale of equipment 373,500 $151,400 39,250 191,158 (24,125) Income before taxes Income taxes expense Net income FORTEN COMPANY 158,225 se,ase 5107,375 Comparative Balance Sheets December 31 Current Year $78,400 94,460 304, 156 1,400 478,416 138,500 (46,125) $570,791 $ 72,141 73,200 Prior Year $92,50 69,625 270,800 2,275 435, 127,000 (55,500) $ 506,700 $143,175 77,550 220,725 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 Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity Additional Information on Current Year Transactions 143,341 191,250 162,250 66,0 170,200 $578,791 116,925 $ 506,700 6. The loss on the cash sale of equipment was $24.125 (details in b b. Sold equipment costing $103,875, with accumulated depreciation of $49,125, for $30,625 cash c. Purchased equipment costing $115,375 by paying $68,000 cash and signing a long-term notes payable for the balance d. Paid $53,725 cash to reduce the long-term notes payable e. Issued 4,400 shares of common stock for $20 cash per share t. Declared and paid cash dividends of $53,900.