1. The company has net income for the year of $130,000. The balance in Retained Earnings at the beginning of the year is $80,000. The company declared dividends of $70,000 during theyear. What is the ending balance in Retained Eamings? Hint: you may find it helpful to use a t-account as you work through this question. \begin{tabular}{|l|} \hline$140,000 \\ $20,000 \\ $210,000 \\ $60,000 \end{tabular} 2. Company A reported salary expense of $12,000 in its annual income Statement. The balance in Salaries Payable decreased by $3,000 during the year, according to its Balance Sheet. What amount should Company A report as an abjustment to Net income in its Statement of Cash Flow, assuming the indirect method is used? Minus $3,000 Minus $15,000 Plus $3,000 Plus $12,000