11. Frosty Inc. has the following balances on December 31 prior to closing entries: Revenues $35,000 10,000 000 , 23,000 4,000 1,000 18,000 Retained Earnings, Jan. 1 Cash Expenses Accounts Payable Dividends Supplies Based upon the balances above, what net adjustment would be made to Retained Earnings due to closing entries? A. Increase of $11,000 B. Increase of $14,000 C. Increase of $12,000 D. Increase of $13,000 3. Which of the following statements regarding financial reports is not correct? A. An income statement shows revenues and expenses. B. A statement of cash flows shows cash inflows and outflows from operating, investing, and financing activities. C. A balance sheet contains assets, liabilities, and stockholders' equity information. D. A statement of stockholders' equity reports revenues, net income, and dividends information