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Saved Help Save & CH Required information Required information [The following information applies to the questions displayed below.] Forten Company, a merchandiser, recently completed its calendar-year 2018 operations. 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. The company's income statement, balance sheets, and additional information follow FORTEN COMPANY Comparative Balance Sheets December 31, 2018 and 2017 2018 2017 Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment $ 60,400 76,340 286,156 1,280 424,176 150,500 (40, 125) $ 80,500 57,625 258,800 2,035 398,960 115,000 (49,500) 3 FA FG FB F10 F11 & 7 3 4 5 PA10-in Anital in excess OT nar common STOCK ! Required information $ 617,500 292, eee 325,500 FORTEN COMPANY Income Statement For Year Ended December 31, 2018 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 27,750 Other expenses 139,400 Other gains (losses) Loss on sale f equipment Income before taxes Income taxes expense Net income 167,150 (12, 125) 146, 225 34,850 $ 112,175 3 FA FG FB F10 F11 & 7 3 4 5 PA10-in Anital in excess OT nar common STOCK ! Required information $ 617,500 292, eee 325,500 FORTEN COMPANY Income Statement For Year Ended December 31, 2018 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 27,750 Other expenses 139,400 Other gains (losses) Loss on sale f equipment Income before taxes Income taxes expense Net income 167,150 (12, 125) 146, 225 34,850 $ 112,175