A) a B) b C) c 31. Tritan Company received a cash advance of $500 from a customer. As a result of this even, A) assets increased by $500. B) stockholders' equity increased by $500. C) liabilities decreased by $500 D) both a and b. 32. Franklin Company provided consulting services and billed the client $2,500. As a result of this event A) assets remained unchanged. B) assets increased by $2,500. C) stockholders' equity increased by $2,500 D) Both b and e. 33. Use the following information: Sheepskin Company had the following transactions during 2016: Sales of $4,500 on account. Collected $2,000 for services to be performed in 2017. Paid $625 cash in salarics. Purchased airline tickets for $250 in December for a trip to take place in 2017. What is Sheepskin's 2016 net income using accrual accounting? ) $3.875. B) $5,875. C) $5,625. D) $3,625. 34. Use the following information: Sheepskin Company had the following transactions during the 2016. Sales of $4,500 on account. Collected $2,000 for services to be performed in 2017. Paid $625 cash in salaries. Purchased airline tickets for $250 in December for a trip to take place in 2017. What is Sheepskin's 2016 net income using cash basis accounting? A) S5,875 B) $1,375. Page 9