8. The following is a summary of observations from the review of the trial balance and general ledger for Lakeside Company for 2007 and 2008: # Observations from Trial Balance and General Ledger Comment on Significance 1. The sales for Store Three have increased by approximately 94% since the previous year. At the same time, the cost of the goods sold has dropped from 58.5% of sales (which is consistent with the other stores) to only 50.3% of sales. Also, the inventory held by this store has risen by over 50%. 2. There was a gain on disposition of fixed assets of $14,000. 3. The company's two bank credit lines now have a total balance that exceeds the $750,000 maximum that was indicated in the earlier case. 4. The long-term notes payable increased by $50,000. 5. Cash flow from operations declined significantly in 2008.