1. Radford Company was started on January 2, 2016. During its first year of operations, Radford Company provided $86,000 in consulting services to its clients on account and collected $69,000 of this amount. Use the horizontal financial statements model to record these transactions and determine which of the following statements is incorrect.

a. Net income increased by $86,000.

b. Total assets increased by $69,000.

c. Retained earnings increased by $86,000.

d. A cash inflow of $69,000 is shown on the statement of cash flows.