Please help me understand :(

Problem 23-6 Comparative balance sheet accounts of Oriole Inc. are presented below. ORIOLE INC. COMPARATIVE BALANCE SHEET ACCOUNTS AS OF DECEMBER 31, 2017 AND 2016 December 31 2017 2016 bit Accounts $41,600 Cash $33,700 70,500 60,600 Accounts Receivable 29,700 Inventory 23,700 38,900 Equity investments 22,300 Machinery 29,900 18,800 56,300 dings 67,600 7,600 7,600 Land $269,200 $239,600 Credit Accounts $2,200 Allowance for Doubtful Accounts $1,500 5,600 Accumulated Depreciation-Machinery 2,300 Accumulated Depreciation Buildings 13,500 9,000 34,700 Accounts Payable 24,800 3,300 Accrued Payables 2,600 Long-Term Notes Payable 20,900 31,300 Common Stock, no par 150,000 125,000 39,000 43,100 Retained Earnings $269,200 $239,600 Additional data (ignoring taxes): 1. Net income for the year was $41,800. 2. Cash dividends declared and paid during the year were $20,900. 3. A 20% stock dividend was declared during the year, $25,000 of retained earnings was capitalized. 4. Equity investments (level of ownership is less than 20%) that cost $25,000 were sold during the year for $28,800. No unrealized gains and losses were recorded on these investments in 2017. 5. Machinery that cost $3,700, on which $750 of depreciation had accumulated, was sold for $2,150 Oriole's 2017 income statement follows (ignoring taxes)