1- During 2019, Waggoner Company performed services for which customers paid or promised to pay $587,000. Of this amount, $552,000 had been collected by year end. Waggoner paid $340,000 in cash for employee wages and owed the employees $15,000 at the end of the year for work that had been done but had not paid for. Waggoner paid interest expense of $3,000 and $195,000 for other service expenses. The income tax rate was 35%, and income taxes had not yet been paid at the end of the year. Waggoner declared and paid dividends of $20,000. There were no other events that affected cash.

What was the amount of the increase or decrease in cash during the year?

Group of answer choices

$8,000 decrease in cash

$4,000 increase in cash

$4,000 decrease in cash

$6,000 decrease in cash

2-Net income is equal to:

Group of answer choices

Assets minus Liabilities

Revenues and Gains minus Expenses and Losses

Shareholders Equity minus Assets

Revenues and Assets minus Expenses and Liabilities