In 2020. August Industries reported $950,000 in retained earnings. In addition, August's board of directors authorized payment of a $200,000 cash dividend to preferred stockholders and a stock dividend worth $200,000 to common stockholders. What impact will payment of these dividends have on August's retained earnings? They will collectively lower retained earnings, resulting in $550.000 in retained earnings. They will collectively raise retained earnings, resulting in $1,350,000 in retained earnings. The cash dividend will lower retained earnings and the stock dividend will raise it, resulting in $950,000 in retained earnings. O The cash dividend will raise retained earnings and the stock dividend will lowerit, resulting in $950,000 in retained earnings