The comparative balance sheets for $2016$ and $2015$ are given below for Surmise Company. Net income for $2016$ was $$50$ million.

SURMISE COMPANY

Comparative Balance Sheets

December $31,2016$ and $2015$

$($$ in millions$)$

$20162015$

Assets

Cash $ $45$ $ $40$

Accounts receivable $9296$

Less: Allowance for uncollectible accounts $(12)(4)$

Prepaid expenses $85$

Inventory $145130$

Long$-$term investment $8040$

Land $100100$

Buildings and equipment $411300$

Less: Accumulated depreciation $(142)(120)$

Patent $1617$

$ $743$ $ $604$

Liabilities

Accounts payable $ $17$ $ $32$

Accrued liabilities $(2)10$

Notes payable $350$

Lease liability $1110$

Bonds payable $65125$

Shareholders$$ Equity

Common stock $6050$

Paid$-$in capital$$excess of par $245205$

Retained earnings $212182$

$ $743$ $ $604$