During the current year, a firm sells inventory on account for $1,000. The inventory (which was purchased in a prior period) originally cost $700. An additional $50 was spent (in the current year) sending the goods to a customer. 1. Based solely on these transactions, the increase to retained carnings would be: a. $1,000 b. $ 950 c. $ 300 d. $ 250 a. 2. The firm's net cash flows from these transactions would equate to: a $1,000 increase in cash. b. a $700 decrease in cash. a $300 increase in cash. d. a $50 decrease in cash. C