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. Sales Cost of goods sold Gross profit FORTEN COMPANY Income Statement For Current Year Ended December 31 Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Loss on sale of equipment $597,500 288,000 309,500 $135,400 23,750 159,150 (8,125) Income before taxes Income taxes expense Net income 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 142,225 28,450 $113,775 FORTEN COMPANY Comparative Balance Sheets December 31 Current Year $ 54,400 70,310 280,156 1,280 Prior Year $ 76,500 53,625 254,800 2,005 406,146 386,930 154,500 111,000 (38,125) (47,500) $522,521 $450,430 $ 56,141 $119,175 10,900 6,600 67,041 125,775 63,500 51,750