21. On December 31,2020 , Russel, Inc. reported retained earnings of $110,000. In 2021 , Russel, Inc. had revenues of $85,000 and expenses of $45,000. In addition, the business paid cash dividends in 2021 of $35,000. Given this information, what was Retained aarnings on Russel, Inc.'s balance sheet on December 31, 2021? a. $100,000 b. $115,000 c. $130,000 d. $155,000 e. None of the answers listed above is the correct answer to this question. 22. If a firm has $100 in inventories, a current ratio equal to 0.8, and a quick ratio equal to 0.4, what is the firm's Net Working Capital? a. $0 b. $50 c. $50 d. $100 e. $100 f. None of the answers listed above is the correct answer. 23. Crimpton, Inc. had a current ratio of 2.0 at the end of 2019. Current assets and current liabilities increased by equal amounts during 2020 . The effects on net working capital and on the current ratio, respectively, were: a. no effect; increase. b. no effect; decrease. c. increase; increase. d. decrease; decrease. e. None of the combinations listed above are always correct. 24. Which of the following steps is most likely to decrease a company's cash conversion cycle (assume that none of the following actions has any impact on sales or COGS)? Note: there more be more than one answer for this question - record the letter of all that apply (this is an all or nothing answer). a. Change its receivables policy from net 45 to net 30 (note that this action will decrease the firm's average collection period from 45 days to 30 days). b. Change its payables policy to pay bills in 40 days instead of in 30 days. c. Decrease the inventory conversion period from 50 days to 40 days. d. Reduce the firm's notes payable (i.e., bank loan) balance by 20%. e. None of the actions listed above will decrease the firm's cash conversion cycle. 25. Curry, Inc. is planning to relax its credit terms. This will increase the company's accounts receivable balance. To finance this increase, Curry, Inc. will increase its short-term loans (i.e., increase notes payable). Curry, Inc. believes that this event will have no affect on either sales or costs, and therefore no affect on net income. All else constant, this new policy should cause the firm's current ratio (assuming a current ratio of 1.7) to: a. Increase b. Decrease c. No Change d. Not enough information is provided to answer this