1. 8.00 points value: The following changes took placo last year in Pavolik Company's balance sheet accounts: Liabilities and Equity Accounts $35 I $ 4 D $ 8 150 I $80 D $ 54 I $ 5 D Accounts payable Cash Accounts receivable Inventory Prepaid expenses Long-term investments Property, plant, and equipment185 Retained eamings Accumulated depreciation 110 Accrued liabilitios 70 DIncome taxes payable $ 9IBonds payable $ 6D Common stock $ 60 D Decrease; |s Increase. Long-term investments that had cost the company $6 were sold during the year for $16 and land that had cost $15 was sold for $9. In addition, the company declared and paid $30 in cash dividends during the year. Besides the sale of land, no other sales or retirements of plant and equipment took place during the year. Pavolik did not retire any bonds during the year or issue any new common stock. The company's income statement for the year follows: Sales Cost of goods sold $ 700 400 Gross margin Selling and administrative expenses 300 184 116