Check my work The following changes took place last year in Pavolik Company's balance sheet accounts Liabilities and Stockholders' Equity Accounts Asset and Contra-Asset Accounts Cash Accounts receivable Inventory Prepaid expenses Long-term investments Property, plant, and equipment Accumulated depreciation $ 32 D Accounts payable $ 36I Accrued liabilities $82 D Income taxes payable $ 31I Bonds payable $ 33 D Common stock $575 I Retained earnings $118 I $ 98 I $ 36 D $ 41 I $300 I $144 D $118 I D Decrease: I = Increase Long-term investments that cost the company $33 were sold during the year for $70 and land that cost $69 was sold for $36. 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 Gross margin Selling and administrative expenses Net operating income Nonoperating items: $1,380 614 766 540 226 $ (33) 37 Loss on sale of land Gain on sale of investments Income before taxes Income taxes Net income 230 82 $ 148