Use the following information for the Problems below [The following information applies to the questions displayed below.] Forten Company. a merchandiser, recently completed its calendar-year 2017 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 and balance sheets follow FORTEN COMPANY Comparative Balance Sheets December 31, 2017 and 2016 2017 2016 Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment Total assets $ 66,400 84,500 61,625 262,800 2,115 411,040 119,000 51,500 $546,631 478,540 82,380 292,156 1,320 442,256 146,500 42,125 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 $ 64,141 131,175 8,200 139,375 59,750 199,125 13,300 77,441 59,500 136,941 184,750 161,250 118,165 $546,631 478,540 176,4460 FORTEN COMPANY Income Statement For Year Ended December 31, 2017 Sales Cost of goods sold Gross profit Operating expenses 637,500 296,000 341,500 Depreciation expense $31,756 143,400 175,150 Other expenses Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net income 150,225 39,650 $ 110,575 Problem 12-3A Indirect: Statement of cash flows LO A1, P1, P2, P3 Additional Information on Year 2017 Transactions