During 2020, EE Company incurred operating expenses amounting to $350,000, of which $155,000 was paid in cash; the balance will be paid during 2021. Which of the following is correct for 2020 year-end balance sheet?

	a.	Net income decreases $350,000, liabilities increase $195,000, and stockholders' equity decreases $350,000.
	b.	Stockholders' equity decreases $350,000, assets decrease $155,000, and liabilities increase $195,000.
	c.	Net income decreases $350,000, assets decrease $155,000, and liabilities increase $195,000.
	d.	Stockholders' equity increases $350,000 and assets increase $155,000, and liabilities decrease $195,000.