22 10 points eBook Hint Print References 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. Sales Cost of goods sold Gross margin Selling and administrative expenses $ 33 D $ 37 I $ 84 D $ 32 I $ 34 D $ 590 I $ 121 I Net operating income Nonoperating items: Loss on sale of land Gain on sale of investments Income before taxes Income taxes Net income Long-term investments that cost the company $34 were sold during the year for $72 and land that cost $71 was sold for $37. In addition, the company declared and paid $31 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: Liabilities and Stockholders' Equity Accounts Accounts payable $ 101 I Accrued liabilities $ 37 D $ 42 I $ 308 I $ 148 D $ 121 I $ (34) 38 Income taxes payable Bonds payable Common stock Retained earnings $ 1,410 628 782 550 232 4 236 84 $ 152 The company's beginning cash balance was $154 and its ending balance was $121.

The following changes took place last year in Pavolik Company's balance sheet accounts: D = Decrease; 1= Increase. Long-term investments that cost the company $34 were sold during the year for $72 and land that cost $71 was sold for $37. In addition, the company declared and paid $31 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: The company's beginhing cash balance was $154 and its ending balance was $121