Required Information. Use the following Information for the Problems below. [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, (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. FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year 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 $ 63,400 79,360 289,156 $ 82,500 59,625 260,300 1,300 2,075 433,216 405,000 148,500 (41,125) $540,591 $ 62,141 117,000 (50,500) $ 471,500 $128,175 12,700 7,800 74,841 135,975 60,500 57,750 Total liabilities 135,341 193,725 Equity Common stock, $5 par value, 176,250 159,250 Paid-in capital in excess of par, common stock 51,000 Retained earnings 178,000 118,525 Total liabilities and equity $540,591 $ 471,500 FORTEN COMPANY Income Statement For Current Year Ended December 31 Sales Cost of goods sold, Gross profit Operating expenses Depreciation expense other expenses other gains (losses) Loss on sale of equipment Incone before taxes Income taxes expense Net income $627,500 294,000 333,500 $ 29,750 141,400 171,150 (14,125) 148,225 36,850 $111,375