[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 $ 677,500 Cost of goods sold 304,000 Gross profit 373,500 Operating expenses (excluding depreciation) $ 151,400 Depreciation expense 39.750 191,150 Other gains (losses) Loss on sale of equipment (24.125 Income before taxes 158.225 Income taxes expense 50.850 Net income $ 107,375 FORTEN COMPANY Comparative Balance Sheets December 31 Prior Year Current Year $ 78.400 94.460 304,156 1.400 478,416 138.500 (46,125) $ 570,791 $ 92,500 69,625 270.800 2.275 435,200 127.000 (55.500) $ 506,700 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 $ 72.141 15,700 87,841 55.500 143.341 $ 143,175 9,800 152.975 67.750 220725 191.250 66,000 170.200 $ 570,791 169.250 0 116,725 $ 506,700 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $24.125 (details in b). b. Sold equipment costing $103.875, with accumulated depreciation of $49,125, for $30,625 cash. Purchased equipment costing $115,375 by paying $68,000 cash and signing a long-term note payable for the balance. d. Borrowed $5.900 cash by signing a short-term note payable. e Paid $59.625 cash to reduce the long-term notes payable. f Issued 4,400 shares of common stock for $20 cash per share. g. Declared and paid cash dividends of $53.900