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value 10.00 points The following changes took place last year in Pavolik Company's balance sheet accounts Asset and Contra-Asset Accounts Liabilities and Equity Accounts Cash
value 10.00 points 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 S 275 Accumulated depreciation $ 12 D Accounts payable $ 16 1Accrued liabilities $ 42 D Income taxes payable $ 11 Bonds payable $ 13 D Common stock S 38 I S 16 D S 21 $ 140 I S 64 D $ 58 I Retained earnings S 58 I D Decrease; IIncrease Long-term investments that had cost the company $13 were sold during the year for $30, and land that had cost $29 was sold for $16. In addition, the company declared and paid $10 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 $780 334 Gross margin Selling and administrative expenses 446 340 Net operating income Nonoperating items 106 Loss on sale of land S (13) Gain on sale of investment 4 Income before taxes Income taxes 110 42 Net income S 68 The company's beginning cash balance was $112 and its ending balance was $100
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