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 31 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses). Loss on sale of equipment $ 582,500 285,000 297,500 $ 132,400 20,750 153,150 (5,125) Income before taxes Income taxes expense Net income 139,225 24,250 $ 114,975 FORTEN COMPANY Comparative Balance Sheets of December 31 13233 staak Current Year Prior Year $ 49,800 65,810 275,656 1,250 392,516 157,500 (36,625) $ 513,391 $ 53,141 75,000 128,141 162,750 27 500 $ 73,500 50,625 251,800 1,875 377,800 108,000 (46,000) $ 439,800 $ 114,675 54,750 169,425 150,250 n 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 Daid in conital in ovence < Prev 1 of 1 Next >