A)Flitter reported net income of $22,000 for the past year. At the beginning of the year the company had $209,000 in assets and $59,000 in liabilities. By the end of the year, assets had increased to $309,000 and liabilities were $84,000. Calculate its return on assets:

10.5%

8.5%

7.1%

35.5%

25.3%

B)If a company uses $1,510 of its cash to purchase supplies, the effect on the accounting equation would be:

Assets increase $1,510 and liabilities decrease $1,510.

One asset increases $1,510 and another asset decreases $1,510, causing no effect.

Assets decrease $1,510 and equity decreases $1,510.

Assets decrease $1,510 and equity increases $1,510.

Assets increase $1,510 and liabilities increase $1,510.