Required information Use the following Information for the Problems below. [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 $ 66,480 82,380 292,156 1,320 442, 256 146,500 (42,125) $546,631 $ 84,500 61,625 262,800 2,115 411,040 119,00 (51,500) $ 478,540 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 Connon stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity $ 64,141 13,300 77,441 59,500 136,941 $ 131,175 8,280 139, 375 59,750 199,125 161,250 179,250 54,280 176, 440 $ 546,631 118,165 $ 478,548 $ 637,500 296,000 341,500 FORTEN COMPANY Incone tenent For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 31,750 other expenses 143,480 Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net income 175,150 (16,125) 150,225 39,650 $ 118,575 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $16,125 (details in b). b. Sold equipment costing $79.875, with accumulated depreciation of $41,125, for $22.625 cash. c. Purchased equipment costing $107.375 by paying $52.000 cash and signing a long-term note payable for the balance. d. Borrowed $5.100 cash by signing a short-term note payable. e. Pald $55.625 cash to reduce the long-term notes payable. f. Issued 3.600 shares of common stock for $20 cash per share. 9. Declared and pald cash dividends of $52,300