3 The following changes took place last year in Pavolik Company's balance sheet accounts: Asset and Contra-Asset Accounts Liabilities and Stockholders' Equity Accounts Accounts payable Cash Accounts receivable Inventory Prepaid expenses $ 50 $110 1 Accrued liabilities $ 70 D Income taxes payable $ 91 Bonds payable Long-term investments $ 6 D Common stock Book Property, plant, and equipment Accumulated depreciation $185 I Retained earnings $ 60 I ant $ 35 I $ 4D $ 81 $1501 $ 80 D $ 541 Print rences D=Decrease; I = Increase. Long-term investments that cost the company $6 were sold during the year for $16 and land that cost $15 was sold for $9. the company declared and paid $30 in cash dividends during the year. Besides the sale of land, no other sales or retireme and equipment took place during the year. Pavolik did not retire any bonds during the year or issue any new common stoc The company's income statement for the year follows: Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items: Loss on sale of land Gain on sale of investments Income before taxes Income taxes Net income $ 700 400 300 184 116 $ (6) 10 4 120 36 $ 84 The company's beginning cash balance was $90 and its ending balance was $85. < Prev 3 of 3 Next