Questions 9-10 DIRECTIONS: Questions 9 and 10 are to be answered on the basis of the following information. The Pneumatic Corp. showed the following balance sheets at December 31, 2017 and December 31, 2018. 12/31/2017 12/31/2018 Cash 6,700 9,000 Accounts Receivable 12,000 11,500 Merchandise Inventory 31,500 32,000 Prepaid Expenses 800 1,000 Equipment 21,000 28,000 72,000 81,500 Accumulated Depreciation 4,000 5,500 Accounts Payable 17,500 11,500 Common Stock - $5 Per Share 10,000 5,000 Premium on Common Stock 40,000 50,000 Retained Earnings 10,500 13,000 72000 81500 Additional information: A further examination of the Pneumatic Corp.'s transactions for 2018 showed the following: Depreciation on equipment, 2,500 Fully depreciated equipment that cost $1,000 was scrapped, and cost and related accumulated depreciation eliminated. Two thousand shares of common stock were sold at $6 per share A cash dividend of $10,000 was paid