Question

The following changes took place last year in Pavolik Company's balance sheet accounts Liabilities and Stockholders' Equity Accounts Asset and Contra-Asset Accounts Cash Accounts receivable Inventory Prepaid expenses Long-term investments Property, plant, and equipment Accumulated depreciation 20DAccounts payable $ 24I Accrued liabilities 62 I $ 24 D $ 29 I $204 I $ 96 D 82 I 58 D Income taxes payable 19I Bonds payable $ 21 D Common stock $395 I Retained earnings $ 82 I D Decrease:I-Increase Long-term investments that cost the company $21 were sold during the year for $46 and land that cost $45 was sold for $24. In addition, the company declared and paid $18 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: $1,020 446 574 420 154 (21) 25 Loss on sale of land Gain on sale of investments Income before taxes Income taxes Net income 158 58 100 The company's beginning cash balance was $128 and its ending balance was $108. Reauired

Only need requirement 2

Answer 1