Section 1. Balance Sheet: needs answers Paul Redford, the owner of the Hole in the Wall Inn, a small lodging operation, to a few questions. He is providing you with a additional information as follows The Hole in the Wall Inn Condensed Balance Sheet At December 31, 2016 and 2015 2015 2016 Assets Cash Accounts Receivable Investments Equipment 10,000 $ 8,000 22,500 20,000 320,000 59,000) S 311,500 26,500 10,000 200,000 (20,000) Accumulated depreciation Total Assets S 226,500 Liabilities and Owners Equity Current liabilities Accounts payable s 18,000 $ 21,000 8,000 22,000 51,000 Dividends payable 5,000 5,000 28,000 Mortgage payable (current) Total Current Liabilities Long-term liabilities Mortgage payable Total Liabilities Owners Equity Common stock 110,000 161,000 75,000 103,000 70,000 80,500 150,500 311,500 50,000 Retained earnings 73,500 123,500 S 226,500 Total owners equity Total liabilities and owners equity Aditional information regarding activitie in 2016: a) Equipment costing $20,000 and fully depreciated to $0 book value was sold for $5,000. b) Long-term investments costing $10,000 were sold for $12,000. c) Common stock was sold and long-term debt was borrowed during 2016. There were no non-cash financing or investing activities during 2016. d) Income before the gain on the sale of equipment and investments for 2016 totaled $15,000. The Inn's tax rate was 15%. e) All current liabilities are paid on a timely basis. 1) Retained earnings is affected only by net earnings and dividends declared. ANSWER THE FOLLOWING QUESTIONS: 1) What was the change in cash during 2016? 2) What amount of investments were purchased during 20167 3) What was the total cost of equipment purchased during 20162 4) What was the net book value of fixed assets at the end of 2015? 5) What was the amount of mortgage, not counting interest, that was paid during 2016? 6) What were the net earnings (after tax) during 2016? 7) What were the amount of dividends declared during 2016? 8) What were the amount of dividends paid during 2016