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 Cost of goods sold Gross profit Operating expenses (excluding depreciation) $ 152,400 Depreciation expense Other gains (losses) $ 682,500 305,000 377,500 40,750 193,150 Loss on sale of equipment Income before taxes (25,125) Income taxes expense Net income 159,225 52,250 $ 106,975 Assets Cash Accounts receivable FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year $ 79,900 $ 93,500 95,970 305,656 70,625 271,800 1,410 2,295 482,936 438,220 Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Long-term notes payable Total liabilities Equity 137,500 (46,625) $ 573,811 $ 73,141 71,000 144, 141 192,750 128,000 (56,000) $ 510,220 $ 144,675 78,750 223,425 Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity Additional Information on Current Year Transactions 170,250 67,500 0 169,420 116,545 $ 573,811 $ 510,220 a. The loss on the cash sale of equipment was $25,125 (details in b). b. Sold equipment costing $106,875, with accumulated depreciation of $50,125, for $31,625 cash. c. Purchased equipment costing $116,375 by paying $70,000 cash and signing a long-term notes payable for the balance. d. Paid $54,125 cash to reduce the long-term notes payable. e. Issued 4,500 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $54,100.