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abar Chemical Company experienced a hazardous materials spill at one of its plants. As a result, the Agency (EPA) fined the company $1,000,000. The company is contesting the fine. In addition, an ,000 damages related to injuries sustained while cleaning up the spill. Lastly, a homeowner has sued 0. The homeowner lives 6 miles from the plant but believes that the incident has reduced the home's believes that it is probable that the EPA fine will stand. In addition, counsel indicates that an out-of- 00 has recently been reached with the employee. The final papers will be signed next week. Counsel ner's case is much weaker and will be decided in favor of Cinnabar. Other litigation related to the spill ge amounts are uncertain. of the contingent liabilities associated with the hazardous materials spill on the accounts and financial or activity is affected, select "No effect" from the dropdown list and leave the corresponding number count decreases and cash outflows as negative amounts. Balance Sheet Incom ssets Liabilities + Stockholders' Equity Stateme effect = EPA fines payable + Litigation claims payable + 1,000,000 75,000 h Flows Income Statement Check My Work