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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 $31$

$\backslash$table$[[$Sales$,$$$632,500,],[$Cost of goods sold,$295,000,],[$Gross profit,$337,500,],[$Operating expenses $($excluding depreciation$),$$$142,400,],[$Depreciation expense,$30,750,173,150],[$Other gains $($losses$),,],[,$ Loss on sale of equipment,$115,125,],[$Income before taxes,$149,225,],[$Income taxes expense,$38,250,],[$Net income,,$$110,975$