Additional Information on Current Year Transactions

a$.$ The loss on the cash sale of equipment was $$11,125($details in b$).$

b$.$ Sold equipment costing $$64,875,$ with accumulated depreciation of $$36,125,$ for $$17,625$ cash.

c$.$ Purchased equipment costing $$102,375$ by paying $$42,000$ cash and signing a long$-$term notes payable

for the balance.

d$.$ Paid $$48,525$ cash to reduce the long$-$term notes payable.

e$.$ Issued $3,100$ shares of common stock for $$20$ cash per share.

f$.$ Declared and paid cash dividends of $$51,300.\backslash$table$[[$FORTEN COMPANY$],[$Spreadsheet for Statement of Cash Flows$],[$For Current Year Ended December $31],[,\{$

$\backslash$table$[[$December $31,$ Prior$],[$Year$]]\},$Analysis of Changes,$\{$

$\backslash$table$[[$December $31,],[$Current Year$]]\}],[,$Debit,Credit$],[$Balance sheet$-$debit$],[$Cash$,$$$,79,500,,,$$$,58,900],[$Accounts receivable,,$56,625,,,,],[$Inventory$,,257,800,,,,],[$Prepaid expenses,,$2,015,,,,],[$Equipment$,,114,000,,,,],[$$$,509,940,,,$$$,58,900],[$Balance sheet$$credit$],[$Accumulated depreciation$-$Equipment,$$,49,000,,,,],[$Accounts payable,,$123,675,,,,],[$Long$-$term notes payable,,$61,950,,,,],[$Common stock, $$5$ par value,,$156,250,,,,],[$Paid$-$in capital in excess of par value, common stock,,$0,,,,],[$Retained earnings,,$119,065,,,,],[$$$,509,940,,,$$$,0],[$Statement of cash flows$],[$Operating activities$],[,,,,,,],[,,,,,,],[,,,,,,]]\backslash$table$[[$Operating activities$],[,,,,],[,,,,],[,,,,],[,,,,],[,,,,],[,,,,],[,,,,],[,,,,],[$Investing activities$],[,,,,],[,,,,],[$Financing activities$],[,,,,],[,,,,],[,,,,],[$Non cash investing and financing activities$],[],[$Purchase of equipment financed by long$-$term notes payable$],[,$$$,0,$$$,]]\backslash$table$[[$GOLDEN CORPORATION$],[$Spreadsheet for Statement of Cash Flows$],[$For Current Year Ended December $31],[,\{$

$\backslash$table$[[$December $31,$ Prior$],[$Year$]]\},$Analysis of Changes,$\backslash$table$[[$December $31,],[$Current Year$]]],[,$Debit,Credit$],[$Balance sheet$$debit balance accounts$],[$Cash$,$$$,127,900,,,183,000],[$Accounts receivable,,$90,000,,,],[$Inventory$,,545,000,,,],[$Equipment$,,318,000,,,],[$$$,1,080,900,,,],[$Balance sheet$-$credit balance accounts$],[$Accumulated depreciation$-$Equipment,$$,113,500,,,],[$Accounts payable,,$90,000,,,],[$Income taxes payable,,$34,600,,,],[$Common stock, $$2$ par value,,$587,000,,,],[$Paid$-$in capital in excess of par value, common stock,,$188,500,,,],[$Retained earnings,,$67,300,,,],[$$$,1,080,900,,,],[$Statement of cash flows$],[$Operating activities$],[,,,,$

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 $ $612,500$

Cost of goods sold $291,000$

Gross profit $321,500$

Operating expenses $($excluding depreciation$)$ $ $138,400$

Depreciation expense $26,750165,150$

Other gains $($losses$)$

Loss on sale of equipment $(11,125)$

Income before taxes $145,225$

Income taxes expense $32,650$

Net income $ $112,575$

FORTEN COMPANY

Comparative Balance Sheets

December $31$

Current Year Prior Year

Assets

Cash $ $58,900$ $ $79,500$

Accounts receivable $74,83056,625$

Inventory $284,656257,800$

Prepaid expenses $1,2702,015$

Total current assets $419,656395,940$

Equipment $151,500114,000$

Accumulated depreciation$$Equipment $(39,625)(49,000)$

Total assets $ $531,531$ $ $460,940$

Liabilities and Equity

Accounts payable $ $59,141$ $ $123,675$

Long$-$term notes payable $73,80061,950$

Total liabilities $132,941185,625$

Equity

Common stock, $$5$ par value $171,750156,250$

Paid$-$in capital in excess of par, common stock $46,5000$

Retained earnings $180,340119,065$

Total liabilities and equity $ $531,531$ $ $460,940$

Additional Information on Current Year Transactions

The loss on the cash sale of equipment was $$11,125($details in b$).$

Sold equipment costing $$64,875,$ with accumulated depreciation of $$36,125,$ for $$17,625$ cash.

Purchased equipment costing $$102,375$ by paying $$42,000$ cash and signing a long$-$term notes payable for the balance.

Paid $$48,525$ cash to reduce the long$-$term notes payable.

Issued $3,100$ shares of common stock for $$20$ cash per share.

Declared and paid cash dividends of $$51,300.[$The following information applies to the questions displayed below.$]$

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.