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 Sales Cost of goods sold Gross profit For Current Year Ended December 31 $ 587,500 286,000 301, 500 21,750 155, 150 Operating expenses (excluding depreciation) $ 133,400 Depreciation expense Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net income (6,125) 140, 225 25,650 $ 114,575