11. A valuer is making a pro-forma income statement and balance sheet.

The profit has been forecast in the income statement based on the percent-of-sales method.

Now the valuer is thinking about how that profit should affect the balance sheet.

Which balance sheet account is directly affected by profit?

Select one:

a. Contributed equity.

b. Retained earnings.

c. Reserves.

d. Dividends.

e. Buybacks.