A comparative balance sheet for Vaughn Company appears below: VAUGHN COMPANY Comparative Balance Sheet Assets Dec. 31, 2020 Dec. 31, 2019 Cash Accounts receivable $44,000 $16,000 28,000 18,000 Inventory Prepaid expenses Long-term investments 35,000 22,000 11,000 19,000 0 27,000 Equipment 75,000 38,000 Accumulated depreciation-equipment (30,000) (20,000) Total assets $163,000 $120,000 Liabilities and Stockholders' Equity Accounts payable $27,000 $12,000 Bonds payable 41,000 55,000 Common stock 50,000 28,000 Retained earnings 45,000 25,000 Total liabilities and stockholders' equity $163,000 $120,000 Additional information: 1. Net income for the year ending December 31, 2020 was $40,000. Cash dividends of $20,000 were declared and paid during the year. Long-term investments that had a cost of $27,000 were sold for $19,000. 2. 3. 4. Sales for 2020 were $125,000.