$[$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 $ $642,500$

Cost of goods sold $297,000$

Gross profit $345,500$

Operating expenses $($excluding depreciation$)$ $ $144,400$

Depreciation expense $32,750177,150$

Other gains $($losses$)$

Loss on sale of equipment $(17,125)$

Income before taxes $151,225$

Income taxes expense $41,050$

Net income $ $110,175$

FORTEN COMPANY

Comparative Balance Sheets

December $31$

Current Year Prior Year

Assets

Cash $ $67,900$ $ $85,500$

Accounts receivable $83,89062,625$

Inventory $293,656263,800$

Prepaid expenses $1,3302,135$

Total current assets $446,776414,060$

Equipment $145,500120,000$

Accumulated depreciation$$Equipment $(42,625)(52,000)$

Total assets $ $549,651$ $ $482,060$

Liabilities and Equity

Accounts payable $ $65,141$ $ $132,675$

Long$-$term notes payable $72,60069,150$

Total liabilities $137,741201,825$

Equity

Common stock, $$5$ par value $180,750162,250$

Paid$-$in capital in excess of par, common stock $55,5000$

Retained earnings $175,660117,985$

Total liabilities and equity $ $549,651$ $ $482,060$

Additional Information on Current Year Transactions

The loss on the cash sale of equipment was $$17,125($details in b$).$

Sold equipment costing $$82,875,$ with accumulated depreciation of $$42,125,$ for $$23,625$ cash.

Purchased equipment costing $$108,375$ by paying $$54,000$ cash and signing a long$-$term notes payable for the balance.

Paid $$50,925$ cash to reduce the long$-$term notes payable.

Issued $3,700$ shares of common stock for $$20$ cash per share.

Declared and paid cash dividends of $$52,500.$