Required information [The following information applies to the questions displayed below.] Comparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet at December 31 Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Long-term investments Total assets. Liabilities and Stockholders' Equity Accounts payable Accrued liabilities: Income taxes payable Total current liabilities Bonds payable Total liabilities Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity This Year Last Year $ 9 $ 15 340 240 125 175 10 6 484 436 610 470 93 85 517 16 385 1019 $ 1,017 $ 840 $ 310 $ 230 60 72 40 34 410 336 290 180 700 516 210 250 107 174 317 324 $ 1,017 $ 840 Weaver Company Income Statement For This Year Ended December 31, Sales $ 800 Cost of goods sold 500 Gross margin 300 Selling and administrative expenses Net operating income Nonoperating items: Gain on sale of investments 213 87 $7 Loss on sale of equipment (4) 3 Income before taxes Income taxes 90 27 Net income $ 63 During this year, Weaver sold some equipment for $20 that had cost $40 and on which there was accumulated depreciation of $16. In addition, the company sold long-term investments for $10 that had cost $3 when purchased several years ago. Weaver paid a cash dividend this year and the company repurchased $40 of its own stock. This year Weaver did not retire any bonds.