The following changes took place last year in Pavolik Company's balance sheet accounts: Asset and Contra-Asset Accounts Cash Accounts receivable Inventory Prepaid expenses Long-term investments Property, plant, and equipment Accumulated depreciation: D= Decrease; I = Increase. $50 $ 110 I Liabilities and Stockholders' Equity Accounts Accounts payable Accrued liabilities $ 351 $40 $ 70 D Income taxes payable $81 $ 91 $60 $185 I $ 60 I Bonds payable $ 450 1 Common stock Retained earnings $ 80 D $34 I Long-term Investments that cost the company $6 were sold during the year for $16 and land that cost $15 was sold for $9. In addition, the company declared and paid $30 in cash dividends during the year. Besides the sale of land, no other sales or retirements of plant and equipment took place during the year. Pavolik did not retire any bonds during the year or issue any new common stock. The company's Income statement for the year follows: Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating Income Nonoperating items: Loss on sale of land Gain on sale of investments $ 700 400 300 184 116 5(6) 10 120 36 $ 84 Income before taxes Income taxes Net Incone The company's beginning cash balance was $90 and its ending balance was $85. Operating activities: Investing activities: Financing activities: Pavolik Company Statement of Cash Flows Beginning cash and cash equivalents Ending cash and cash equivalents 130 0 0 130 130