Balance sheet and income statement transactions. Pet Caterers Inc. started the year with \(\$ 3,500\) in cash and common stock. During 2012, the Pet Caterers earned \(\$ 6,500\) of revenue on account. The company collected \(\$ 5,900\) cash from accounts receivable and paid \(\$ 3,115\) cash for operating expenses. Enter the transactions into the accounting equation. (LO 3 , 4)

a. What happened to total assets (increase or decrease and by how much)?

b. What is the cash balance on December 31, 2012?

c. What is the total shareholders' equity on December 31, 2012 ?

d. What is net income for the year?