P13-11A The comparative statements of financial position for Amaral Reis Company SA as of December 31 are presented as follows. AMARAL REIS COMPANY SA Comparative Statements of Financial Position December 31 Assets 2017 2016 Land R$145,000 R$130,000 Equipment 228,000 155,000 Accumulated depreciationequipment (45,000) (35,000) Buildings 200,000 200,000 Accumulated depreciationbuildings (60,000) (40,000) Prepaid expenses 18,280 21,000 Inventory 154,550 142,000 Accounts receivable 46,000 62,000 Cash 62,520 45,000 Total R$749,350 R$680,000 Equity and Liabilities Share capitalordinary, R$1 par R$195,000 R$160,000 Retained earnings 208,000 180,000 Bonds payable 300,000 300,000 Accounts payable 46,350 40,000 Total R$749,350 R$680,000 Additional information: 1. Operating expenses include depreciation expense of R$40,000. 2. Land was sold for cash at book value of R$20,000. 3. Cash dividends of R$20,000 were paid.