Forten Company's current year income statement, comparative balance sheets, and additional information follow. For the y

[answerhappygod]

Forten Company S Current Year Income Statement Comparative Balance Sheets And Additional Information Follow For The Y 1 (34.45 KiB) Viewed 36 times

Forten Company S Current Year Income Statement Comparative Balance Sheets And Additional Information Follow For The Y 2 (61.88 KiB) Viewed 36 times

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) $ 143,400 31,750 Depreciation expense Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net income $ 637,500 296,000 341,500 175, 150 (16,125) 150,225 39,650 $ 110,575

Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets FORTEN COMPANY Comparative Balance Sheets December 31 Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Long-term notes payable. Total liabilities Equity Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity Current Year Prior Year $ 66,400 $ 84,500 82,380 292,156 61,625 262,800 2,115 1,320 442,256 146,500 (42,125) $ 546,631 the balance. d. Paid $50,525 cash to reduce the long-term notes payable. e. Issued 3,600 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $52,300. $ 64,141 72,800 136,941 179,250 54,000 176,440 $ 546,631 411,040 119,000 (51,500) $ 478,540 $ 131, 175 67,950 199, 125 161,250 0 118,165 $ 478,540 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $16,125 (details in b). b. Sold equipment costing $79,875, with accumulated depreciation of $41,125, for $22,625 cash. c. Purchased equipment costing $107,375 by paying $52,000 cash and signing a long-term notes payable for