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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 $ $672,500$

Cost of goods sold $303,000$

Gross profit $369,500$

Operating expenses $($excluding depreciation$)$ $ $150,400$

Depreciation expense $38,750189,150$

Other gains $($losses$)$

Loss on sale of equipment $(23,125)$

Income before taxes $157,225$

Income taxes expense $49,450$

Net income $ $107,775$

FORTEN COMPANY

Comparative Balance Sheets

December $31$

Current Year Prior Year

Assets

Cash $ $76,900$ $ $91,500$

Accounts receivable $92,95068,625$

Inventory $302,656269,800$

Prepaid expenses $1,3902,255$

Total current assets $473,896432,180$

Equipment $139,500126,000$

Accumulated depreciation$$Equipment $(45,625)(55,000)$

Total assets $ $567,771$ $ $503,180$

Liabilities and Equity

Accounts payable $ $71,141$ $ $141,675$

Long$-$term notes payable $71,40076,350$

Total liabilities $142,541218,025$

Equity

Common stock, $$5$ par value $189,750168,250$

Paid$-$in capital in excess of par, common stock $64,5000$

Retained earnings $170,980116,905$

Total liabilities and equity $ $567,771$ $ $503,180$

Additional Information on Current Year Transactions

The loss on the cash sale of equipment was $$23,125($details in b$).$

Sold equipment costing $$100,875,$ with accumulated depreciation of $$48,125,$ for $$29,625$ cash.

Purchased equipment costing $$114,375$ by paying $$66,000$ cash and signing a long$-$term notes payable for the balance.

Paid $$53,325$ cash to reduce the long$-$term notes payable.

Issued $4,300$ shares of common stock for $$20$ cash per share.

Declared and paid cash dividends of $$53,700.$