Exercise 12-7 Shown below are comparative balance sheets for Martinez Company Martinez Company Comparative Balance Sheets December 31 2016 $70,268 242,744 603,666 319,400 638,800 Assets Cash Accounts receivable Inventory Land Equipment Accumulated depreciation-equipment Total Liabilities and Stockholders' Equity Accounts payable Bonds payable Common stock ($1 par) Retained earnings Total 2017 217,192 281,072 533,398 255,520 830,440 (210,804) (102,208) $1,906,818$1,772,670 137,342 638,800 555,756 440,772 $1,906,818 $1,772,670 $ 124,566 479,100 689,904 613,248 Additional information: 1. Net income for 2017 was $297,042 2. Depreciation expense was $108,596 3. Cash dividends of $124,566 were declared and paid 4. Bonds payable amounting to $159,700 were redeemed for cash $159,700 5. Common stock was issued for $134,148 cash 6. No equipment was sold during 2017 7. Land was sold for its book value