On December 31, 2023, the attorney for Robinson's Security Co. provided the following information about the status of four outstanding lawsuits involving the company: a. When Katrina Salcedo was entering Robinson's office, she slipped on a loose carpet, breaking a shoulder in the fall. Katrina has sued Robinson's for $250,000 to cover medical expenses and pain and suffering, along with lost wages while her shoulder healed. Robinson believes Salcedo will settle before the case goes to court, which Robinson is willing to do because its attorney believes it would lose. Robinson's attorney believes there is a remote possibility that the claim will be settled for $250,000, but said Salcedo has indicated a willingness to accept either $225,000 in cash or shares of stock in Robinson's Security Co. with an estimated value of $200,000. Sara Robinson is the only shareholder of the security company and would prefer not to have Salcedo share ownership. b. A former employee, Jason Santos, is suing Robinson's for $100,000 alleging wrongful termination. Robinson's attorney believes the case is frivolous and that Robinson will not be required to pay anything to Santos. c. In the past, Jacob Watson was a partner with Sara Robinson in a security company located in the same city where Robinson's is now located. When the partnership dissolved a year ago, Robinson retained the business and Watson signed an agreement not to establish another security company in the city for the next year. The day after signing the agreement, Watson established another security company whose office is located ten feet outside the city limits. Watson primarily provides services in the same city as Robinson's. Robinson's is suing Watson for violation of the non-competition agreement and is seeking damages of $300,000. Robinson and her attorney are confident that she will win. d. The attorneys for several of Robinson's clients are gathering information with the intention of filing a class action lawsuit, claiming that the security cameras installed by Robinson were flawed. Robinson believes the cameras were state-of-the-art at the time of installation and that the lawsuit has no merit. Robinson's attorney. believes it is probable that Robinson will have a loss of $100,000. Requirements: Explain how each of these cases will be reported in the balance sheet, income statement, and notes to the financial statements on December 31, 2023. It is possible that a case will have no impact on the financial statements. If so, please state this explicitly.