Exercise 17-8 Here are comparative balance sheets for Velo Company VELO COMPANY Comparative Balance Sheets December 31 Assets Cash Accounts receivable Inventory Land Equipment Accumulated depreciation-equipment 2017 $72,500 86,500 169,600 73,700 259,200 (66,000) (33,500) 2016 $32,600 71,400 187,300 101,900 200,200 Total Liabilities and Stockholders' Equity Accounts payable Bonds payable Common stock ($1 par) Retained earnings $595,500 $559,900 $46,700 203,700 176,000 133,500 $595,500 $559,900 $35,200 150,200 214,100 196,000 Total Additional information: 1. Net income for 2017 was $102,500 2. Cash dividends of $40,000 were declared and paid 3. Bonds payable amounting to $53,500 were redeemed for cash $53,500 4. Common stock was issued for $38,100 cash 5. No equipment was sold during 2017, but land was sold at cost