12. On December 31, Year 1, Hopkins Company owed $4,500 in salaries to employees who had worked during December but would be paid in January. If the year-end adjustment is properly recorded on December 31, Year 1, what will be the effect of this accrual on the following items for Hopkins? Net Income Cash Flow from Operating Activities No effect No effect Decrease Decrease A. No effect C. Increase D. No effect Please give your justification! (Explain why)