Conrad Air, Inc., reported net income of $$1,368,000$ for the year ended December $31,2022.$

Show how Conrad's balance sheet would change from $2021$ to $2022$ depending on how Conrad "spent" those earnings as described in the scenarios that appear below.

a$.$ Conrad paid no dividends during the year and invested the funds in marketable securities$.$

b$.$ Conrad paid dividends totaling $$497,000$ and used the balance of the net income to retire $($pay off$)$ long$-$term debt.

c$.$ Conrad paid dividends totaling $$497,000$ and invested the balance of the net income in building a new hangar.

Question content area bottom

Part $1$

a$.$ If Conrad paid no dividends during the year and invested the funds in marketable securities$,$ the amount transferred to the balance sheet will be

$enter your response here.

$($Round to the nearest dollar.$)$

Part $2$

The revised marketable securities will be

$enter your response here.

$($Round to the nearest dollar.$)$

The revised retained earnings will be

$enter your response here.

$($Round to the nearest dollar.$)$

Part $4$

b$.$If Conrad paid dividends totaling

$ $497$ comma $000$$$497,000$

and used the balance of the net income to retire $($pay off$)$ long$-$term debt, the amount transferred to the balance sheet will be

$enter your response here.

$($Round to the nearest dollar.$)$

Part $5$

The revised long$-$term debt will be

$enter your response here.

$($Round to the nearest dollar.$)$

Part $6$

The revised retained earnings will be

$enter your response here.

$($Round to the nearest dollar.$)$

Part $7$

c$.$ If Conrad paid dividends totaling

$$497,000$

and invested the balance of the net income in building a new hangar, the amount transferred to the balance sheet will be

$enter your response here.

$($Round to the nearest dollar.$)$

Part $8$

The revised buildings will be

$enter your response here.

$($Round to the nearest dollar.$)$

Part $9$

The revised retained earnings will be

$enter your response here.

$($Round to the nearest dollar.$)$

If Conrad paid no dividends during the year and invested the funds in marketable securities$,$ the amount transferred to the balance sheet will be $$($Round to the nearest dollar.$)$

The revised marketable securities will be $$($Round to the nearest dollar.$)$

The revised retained earnings will be $$($Round to the nearest dollar.$)$

If Conrad paid dividends totaling $\{$$$497000\}$ and used the balance of the net income to retire $($pay off$)$ long$-$term debt, the amount transferred to the balance sheet will be $$($Round to the nearest dollar.$)$

The revised long$-$term debt will be $$($Round to the nearest dollar.$)$

The revised retained earnings will be $$($Round to the nearest dollar.$)$

If Conrad paid dividends totaling $\{$$$497000\}$ and invested the balance of the net income in building a new hangar, the amount transferred to the balance sheet will be $$($Round to the nearest dollar.$)$

The revised buildings will be $$($Round to the nearest dollar.$)$

The revised retained earnings will be $$($Round to the nearest dollar.$)$

Conrad Air, Inc. Balance Sheet

as of December $31,2021$

Assets

Cash

$ $119,000$

Marketable securities

$31,000$

Accounts receivable

$41,000$

Inventories

$130,000$

Current assets

$$321,000$

Equipment

$$2,972,000$

Buildings

$1,596,000$

Fixed assets

$$4,568,000$

Total assets

$$4,889,000$

Liabilities and Stockholders' Equity

Accounts payable

$$67,000$

Short$-$term notes

$56,000$

Current liabilities

$$123,000$

Long$-$term debt

$$2,697,000$

Total liabilities

$$2,820,000$

Common stock

$$503,000$

Retained earnings

$1,566,000$

Stockholders' equity

$$2,069,000$

Total liabilities and equity $$4,889,000$