Sales Cost of goods sold Gross profit FORTEN COMPANY Income Statement For Current Year Ended December 31 Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net income Assets Cash Accounts receivable $ 672,500 303,000 369,500 $ 150,400 38,750 189,150 (23,125) FORTEN COMPANY Comparative Balance Sheets Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Long-term notes payable Total liabilities Equity December 31 Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity 157,225 49,450 $ 107,775 Current Year Prior Year $ 76,900 92,950 302,656 $ 91,500 68,625 269,800 1,390 2,255 473,896 432,180 139,500 (45,625) 126,000 (55,000) $ 567,771 $ 503,180 $ 71,141 $ 141,675 71,400 142,541 76,350 218,025 189,750 64,500 170,980 168,250 0 116,905 $ 567,771 $ 503,180