Dulween total liquid assets and total current liabilities.) P3-8 Effect of net income on a firm's balance sheet Relaxing Resort Group reported net. income of $1,736,000 for the year ended December 31, 2015. Show how Relaxing Resort Group's balance sheet would change from 2014 to 2015 depending on how Relaxing Resort Group "spent those earnings as described in the situations that appear below. Assets Cash Marketable securities Accounts receivable Inventories Current assets Equipment Buildings Fixed assets Total assets 120,000 56,000 66,000 $ 130,000 $ 372,000 $3.928,000 $1,600,000 $5,528,000 $5,900,000 set of December Liabilities and Stockholders' Equity REL Accounts payable $ 170,000 Short-term notes 76,000 Current liabilities $7246,000 Long-term debt $3,210,500 Total liabilities $3,456,500 Common stock $ 500,000 Retained earnings $1,964,500 Stockholders equity $2,464,500 Total liabilities and equity $5,921,000 a. Relaxing Resort Group paid no dividends during the year and invested the funds in marketable securities. b. Relaxing Resort Group paid dividends totaling $800,000 and used the balance of the net income to retire (pay off) long-term debt. c. Relaxing Resort Group paid dividends totaling $800,000 and invested the balance of the net income in building a new coffee lounge. d. Relaxing Resort Group paid out all $1,736,000 as dividends to its stockholders