12. Revenue is less than expenses. If liabilities and common stock were unchanged, then a. a. cash flows from operating activities were greater than cash flows from investing activities. b. b. total assets decreased. c. c. retained earnings were less than net income during the period. d. d. the company must have purchased assets with cash.

13. Among other items, the balance sheet of XYZ Company reports retained earnings of $50,000 and total liabilities of $40,000. Based on this information alone, you would know that a. since the companys inception, the total amount of net income exceeded total dividends by at least $50,000. b. XYZ Company has enough cash to pay off its liabilities. c. stockholders equity of the company amounted to $10,000. d. total assets amounted to $90,000.

14. The Southern Company began the accounting period with assets of $600, common stock of $200, and retained earnings of $250. During the period, revenue was $300, expenses were $200, and dividends were $50. Common stock was unchanged during the accounting period. Liabilities decreased by $100. Based on this information, a. net income amounted to $50. b. total assets at the end of the period were $550. c. retained earnings at the end of the period amounted to $350. d. liabilities at the end of the period amounted to $100.