paring & Analyzing Statements 2 ! Required information [The following information applies to the questions displayed below.] Saved 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 Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense: Other gains (losses) Loss on sale of equipment $ 677,500 304,000 373,500 $151,400 39,750 191,150 (24,125) Income before taxes Income taxes expense Net income Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets. Equipment FORTEN COMPANY Comparative Balance Sheets December 31 158,225 50,850 $107,375 Current Year Prior Year $ 78,400 94,460 $92,500 69,625 304,156 270,800 1,400 2,275 478,416 435,200 138,500 127,000