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, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses. FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year ok nt $ 79,900 95,970 305,656 1,410 482,936 137,500 (46,625) $ 573,811 $ 93,500 70,625 271,880 2,295 438,220 128,000 (56,000) $ 510,220 onces Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment Total assets Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities Long-term notes payable Total liabilities Equity Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity $ 73,141 16,800 89, 141 55,600 144, 141 $ 144,675 10.000 154,675 68,750 223,425 170,250 192,750 67,500 169,420 $ 573,811 116.545 5510, 220 $ 682,500 305,000 377,500 FORTEN COMPANY Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 40,750 Other expenses 152,400 Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net income 193, 150 (25,125) 159, 225 52,250 $ 106,975 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $25,125 (details in b). b. Sold equipment costing $106,875, with accumulated depreciation of $50,125, for $31,625 cash c. Purchased equipment costing $116,375 by paying $70,000 cash and signing a long-term note payable for the b d. Borrowed $6,000 cash by signing a short-term note payable. e. Paid $60,125 cash to reduce the long-term notes payable. f. Issued 4,500 shares of common stock for $20 cash per share, g. Declared and paid cash dividends of $54,100. Required information FOR TEN COMPANY Statement of Cash Flows For Current Year Ended December 31 Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operations: $ 0 Cash flows from investing activities 0 Cash flows from financing activities