During 2021, Ocean Consulting had the following transactions with its clients (customers):

• On February 1, 2021, the company received cash of $5,200 from clients in payment of their account balances as of December 31, 2020.
• On November 1, 2021, the company received $2,200 cash as payments in advance for services to be performed in 2022.
• The company received a total of $14,000 in cash for services that were performed during 2021.
• The company sent bills totaling $4,200 to clients for services performed during 2021; this amount was unpaid as December 31, 2021.

As a result of these transactions during 2021, the firms stockholders equity will:

Multiple Choice

• increase by $25,600.

• increase by $18,200.

• decrease by $23,400.

• decrease by $20,400.