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 $ 617,500 Cost of goods sold 292,000 Gross profit 335,500 Operating expenses (excluding depreciation) $ 139,400 Depreciation expense 27,750 167,150 Other gains (losses) Loss on sale of equipment (12, 125) Income before taxes 146,225 Income taxes expense 34,050 Net Income $ 112,175 FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year Assets Cash Accounts receivable Inventory $ 60,400 76,340 286.156 $ 80,500 57,625 258,300