3 The following changes took place last year In Pavolik Company's balance sheet accounts: Liabilities and StockholdersEquity Accounts Asset and contra-Asset Accounts Cash Accounts receivable Inventory Prepaid expenses Long-term investments Property, plant, and equipment Accumulated depreciation $ 25 D Accounts payable $ 29 I Accrued liabilities $ 68 D Income taxes payable $ 24I Bonds payable $ 26 D Common stock 47e I Retained earnings $ 97 I $ 77 I s 29 D $ 34 1 $ 244 I s116 D $ 97 I points Hint D = Decrease:-increase Long-term investments that cost the company $26 were sold during the year for $56 and land that cost $55 was sold for $29. In addition, the company declared and pald $23 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. Print ReferencesThe company's Income statement for the year follows: Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Nonoperating items: $1,17e 516 654 47e 184 Loss on sale of land s (26) Gain on sale of investments Income before taxes Income taxes Net income 3e 188 68 $ 12e The company's beginning cash balance was $138 and Its ending balance was $113. Required: Mc Graw 3 of 4