Comparative balance sheets for Final Exam Company appear below: Final Exam Company Comparative Balance Sheet Assets Year 2 Year 1 Cash $23,000 $15,000 Accounts receivable 18,000 14,000 Prepaid expenses 6,000 9,000 Inventory 27,000 15,000 Long-term investments -0- 18,000 Equipment 60,000 30,000 Accumulated depreciation-equipment (18,000) (14,000) Total assets $116,000 $87,000 Liabilities and Stockholders' Equity Accounts payable Bonds payable Common stock $ 21,000 $9,000 37,000 45,000 40,000 23,000 Retained earnings 18,000 10,000 Total liabilities and stockholders' equity $116,000 $87,000 Additional information: 1. Net income for the year ending December 31, Year 2, was $20,000. 2. Cash dividends of $12,000 were declared and paid during the year. 3. 4. Long-term investments that had a book value of $18,000 were sold for $16,000 cash. This resulted in a $2,000 loss on the income statement. There were no sales of equipment during the year