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. 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 $ 682,500 305,000 377,500 $ 152,400 40,750 193,150 (25,125) Income before taxes: Income taxes expense Net income Assets Cash Accounts receivable Inventory FORTEN COMPANY Comparative Balance Sheets December 31 159,225 52,250 $106,975 Current Year Prior Year $ 79,900 95,970 305,656 $ 93,500 70,625 271,800