ces Required information Use the following information for the Problems below. (Algo) [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 $ 672,500 Cost of goods sold 303,000 Gross profit Operating expenses (excluding depreciation) $ 150,400 Depreciation expense Other gains (losses) 369,500 38,750 189,150 Loss on sale of equipment Income before taxes Income taxes expense (23,125) 157,225 49,450 Net income Assets Cash $ 107,775 FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year $ 76,900 92,950 $ 91,500 68,625 269,800 Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable 302,656 1,390 2,255 473,896 432,180 139,500 126,000 (45,625) (55,000) $ 567,771 $ 503,180 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 Additional Information on Current Year Transactions $ 71,141 $ 141,675 71,400 142,541 76,350 218,025 189,750 168,250 64,500 0 170,980 116,905 $ 567,771 $ 503,180 a. The loss on the cash sale of equipment was $23,125 (details in b). b. Sold equipment costing $100,875, with accumulated depreciation of $48,125, for $29,625 cash. c. Purchased equipment costing $114,375 by paying $66,000 cash and signing a long-term notes payable for the balance. d. Paid $53,325 cash to reduce the long-term notes payable. e. Issued 4,300 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $53,700.