Please make sure you are using the DIRECT METHOD. Thanks

The following information applies to the questions displayed below.] Forten Company, a merchandiser, recently completed its calendar-year 2018 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, balance sheets, and additional information follow FORTEN COMPANY Comparative Balance Sheets December 31, 2018 and 2017 2018 2017 Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment Total assets 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 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 $ 64,141 $131,175 8,200 139,375 59,5009,750 199,125 13,300 77,441 136,941 184,750 54,000 170,940 166,750 112,665 $546,631 $478,540