Required information Use the following information for the Problems below. [The following information applies to the...

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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. 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 December 31 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 FORTEN COMPANY Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net incone 5612,500 291,000 321,500 $ 26,750 138,400 165,150 (11,125) 145,225 32,658 $112,575 Current Year Prior Year $ 58,900 74,830 284,656 1,278 $ 79,500 56,625 257,800 2,015 419,656 395,940 151,500 114,000 (39,625) (49,000) $531,531 $460,940 $ 59,141 $123,675 11,800 7,200 70,941 130,875 62,000 54,750 132,941 185,625 171,750 156,250 46,500 180,340 119,065 $531,531 5460,940 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $11,125 (details in b b. Sold equipment costing $64,875, with accumulated depreciation of $36.125, for $17,625 cash. c. Purchased equipment costing $102,375 by paying $42.000 cash and signing a long-term note payable for the balance. d. Borrowed $4,600 cash by signing a short-term note payable e. Paid $53,125 cash to reduce the long-term notes payable. 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. 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 December 31 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 FORTEN COMPANY Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net incone 5612,500 291,000 321,500 $ 26,750 138,400 165,150 (11,125) 145,225 32,658 $112,575 Current Year Prior Year $ 58,900 74,830 284,656 1,278 $ 79,500 56,625 257,800 2,015 419,656 395,940 151,500 114,000 (39,625) (49,000) $531,531 $460,940 $ 59,141 $123,675 11,800 7,200 70,941 130,875 62,000 54,750 132,941 185,625 171,750 156,250 46,500 180,340 119,065 $531,531 5460,940 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $11,125 (details in b b. Sold equipment costing $64,875, with accumulated depreciation of $36.125, for $17,625 cash. c. Purchased equipment costing $102,375 by paying $42.000 cash and signing a long-term note payable for the balance. d. Borrowed $4,600 cash by signing a short-term note payable e. Paid $53,125 cash to reduce the long-term notes payable.