The following changes took place last year in Pavolik Company's balance sheet accounts: Asset and Contra-Asset Accounts Cash Accounta receivable Inventory Prepaid expenses Long-term investments Property, plant, and equipment8 Accumalated depreciation Liabilities and Stockholders Equity Accounts S SD Accounts payable $110I Accrued liabilities s 70 b Income taxes payable s 91 Bonds payable $ 35 I ts $ 8 1 150 I 80 D $ 54 I 0027.46 6D Common stock 5 $ 60 T Retained earnings 8 Retained earning D Decrease: |s Increase. 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 argin Selling and administrative expenses iet operating income Nonoperating itens i s 700 400 184 116 Loss on sale of Land s(6) 1O4 Gain on sale of investnents Incone before taxes Income taxes Net incone 120