sales, (2 all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits Accounts Payable reflect cash payments inventory and Expenses are paid in advance and are initially debited to Prepaid Expenses. The company's income statement and balance sheets follow FORTEN COMPANY Comparative Balance Sheets December 31, 2017 and 2016 Assets Cash 49,800 s 73,500 Accounts receivable 65,810 50,625 Inventory 275,656 251,800 Prepaid expenses 1.250 1,875 Total current assets 392,516 377,800 Equipment 157,500 108,000 Accum. depreciation Equipment Total assets s 513,391 439,800 and Equity Accounts payable s sub-1 s 114,675 Short-term notes payable 10,000 Total current liabilities 63 141 120,675 Long-term notes payable Total liabilities 128,141 169,425 Equity Common stock, $5 par value 162,750 150,250 Paid-in capital in excess of par, c ommon stock Retained earnings 185,000 12e, 125 Total liabilities and equity 513,391 439,800