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 5582, 580 Cost of goods sold 285,000 Gross profit 297,500 Operating expenses (excluding depreciation) $132,400 Depreciation expense 20,750 153, 150 other gains (losses) Loss on sale of equipment (5, 125) Income before taxes 139, 225 Thcome taxes expense 24, 250 Net Income 5114,975 FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year $ 40,000 55,810 275,656 1,250 392516 157,500 (36,625) 5513,391 $ 73,500 50, 625 252,890 1.875 377.00 108.900 (45.000) $439, 390 Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accun depreciation Equipment Total assets Liabilities and Equity Accounts payable Short tera notes payable Total current liabilities Longter notes payable Total liabilities Equity Colon stock. 55 par value Pald.in capital in excess of par. common stock Hetained earnings Total Labrities and equity $ 53,141 10,000 $114,675 6,000 120,675 48,750 160,425 65,000 120, 141 250, 250 252.750 37,500 185,000 $513,391 128, 125 5439.800 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $5125 (details in