Assets FORTEN COMPANY Comparative Balance Sheets December 31, 2010 and 2009 2010 2009 L03 104 105 106 Cash Accounts receivable Merchandise Inventory Prepaid expenses Equipment Accum. depreciation-Equipment Total assets.. Liabilities and Equity Accounts payable. $ 49,800 $ 73,500 65,810 50,625 275,656 251,800 1,250 1,875 FORTEN COMPANY Income Statement For Year Ended December 31, 2010 157,500 108,000 (36,625) $513,391 (46,000) $439,800 Sales Cost of goods sold Gross profit.. $582,500 285,000 297,500 $ 53,141 $114,675 Operating expenses Short-term notes payable 10,000 6,000 Long-term notes payable 65,000 48,750 Depreciation expense Other expenses $ 20,750 132,400 153,150 Common stock, $5 par value 162,750 150,250 Other gains (losses) Paid-in capital in excess of par, common stock 37,500 0 Retained earnings.. 185,000 120,125 Total liabilities and equity $513,391 $439,800 Loss on sale of equipment Income before taxes Income taxes expense Net Income 5,125 139,225 24,250 $114,975