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 325,500 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 $ 60,400 $ 80,500 accounts receivable 76,340 57,625 inventory 286,156 258,800 prepaid expenses 1,280 2,035 total current assets 424,176 398,960 equipment 150,500 115,000 accumulated depreciation—equipment (40,125) (49,500) total assets $ 534,551 $ 464,460 liabilities and equity accounts payable $ 60,141 $ 125,175 long-term notes payable 73,600 63,150 total liabilities 133,741 188,325 equity common stock, $5 par value 173,250 157,250 paid-in capital in excess of par, common stock 48,000 0 retained earnings 179,560 118,885 total liabilities and equity $ 534,551 $ 464,460 additional information on current year transactions the loss on the cash sale of equipment was $12,125 (details in b). sold equipment costing $67,875, with accumulated depreciation of $37,125, for $18,625 cash. purchased equipment costing $103,375 by paying $44,000 cash and signing a long-term notes payable for the balance. paid $48,925 cash to reduce the long-term notes payable. issued 3,200 shares of common stock for $20 cash per share. declared and paid cash dividends of $51,500.