Laramie Company was started on January 2, 2016. During its first year Laramie Company paid $84,000 for salary expense and accrued $8,000 for salary expense as an adjusting entry at the end of its 2016 accounting period. Use the horizontal model to determine the incorrect statement.

a. Total assets decreased by $92,000.

b. Net income decreased by $92,000.

c. Retained earnings decreased by $92,000.

d. A cash outflow of $84,000 is shown on the statement of cash flows.