Part 3: Free Response (35 points total). Partial credit given Vandy Corporation's balanc e sheet and income statement appear below: Comparative Balance Sheet Ending Beginning Balance Balance Assets Cash and cash equivalents Accounts receivable .. Inventory. Property, plant and equipmen.. Less accumulated depreciation Total assets . s 31 61 59 684 349 $486 S 29 73 61 550 319 $394 Liabilities and Stockholders' Equity Accounts payable. S 53 20 52 203 61 S 54 21 48 190 60 21 S394 Accrued liabilities. Income taxes payabl. .. Bonds payable. Retained earnings. Total liabilities and stockholders' equity, $486 Income Statement Sales Gross margin Net operating income Income before taxes .. Net income. $807 Cost of goods sold. 492 315 Selling and administrative expense.. 182 133 Gain on sale of equipmen.. 16 149 45 S104 The company sold equipment for S18 that was originally purchased for $14 and tha accumulated depreciation of S12. It paid a cash dividend of S$28 during the year ane not retire any bonds payable or repurchase any of its own common stock