12. Consider the following clinic balance sheet:

Cash $32,000

Accounts payable $41,000

Accounts receivable 64,000

Long-term debt 120,000

Inventories 35,000

Net assets 518,000

Net fixed assets 548,000

Total assets $679,000

Total liabilities and net assets $679,000

Assume that the clinic uses $12,000 of its existing supplies in its patient care services. Which of the below statements reflects the resulting balance sheet change?

a. There is a change to the left-hand side only.

b. The cash account decreases by $12,000, and the net assets account is reduced by $12,000.

c. There is a change to the right-hand side only.

d. The cash account decreases by $12,000, and the inventories is reduced by $12,000.

e. The inventories account decreases by $12,000, and the net assets account is reduced by $12,000.

f. The inventories account decreases by $12,000, and the accounts payable account is reduced by $12,000

g. None of the above.