The following changes took place last year in Pavolik Company's balance sheet accounts: Asset and Contra-Asset Accounts Liabilities and Equity Accounts Cash Accounts receivable Inventory Prepaid expenses Long-term investments Property, plant, and equipment Accumulated depreciation S 35 I S 5 D Accounts payable $ 110 Accrued liabilities $ 70 D Income taxes payable $ 150 I $ 80 D S 54 I S 9 Bonds payable S 6 D Common stock S 185 Retained earnings S 60 I D = Decrease:-increase Long-term investments that had cost the company $6 were sold during the year for $16 and land that had 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. he company's income statement for the year follows: Sales Cost of goods sold $ 700 400 Gross margin Selling and administrative expenses 300 184 116 Net operating income Nonoperating items: Loss on sale of land Gain on sale of investments S (6) 4 Income before taxes Income taxes 120 36 Net income $ 84