Required information Use the following information for the Problems below. (Algo) (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 $587,500 285,000 301,500 FORTEN COMPANY Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) $133,400 Depreciation expense 21,750 Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net income 155, 150 (6,125) 140,225 25,650 $114,575 FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year $ 51,400 67,310 277,156 1.300 397,166 156,500 (37,125 $516,541 $ 74,500 51,625 252,800 2,025 380,950 109,000 (46,500) 5443,450 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 $ 54,141 10,300 64,441 64,500 128,942 $116,175 6,200 122,375 49,750 172,125 164,250 39,000 184,350 $516,541 151,250 0 120.075 $443,450