; One cannot determine the impact on retained earnings without additional information 1, 2017, Anson Company started the vear with a $300,000 credit balance in es. a $50,000 balance in Common Stock, and a $300,000 balance ng 2017, the company earned net income of $45,000, declared a dividend in Additional Paid-in Capi- of S15,000, and ued 900ditional shares of stock (par value of S1 per share) for $10.000. What istoalstoc equity on December 31, 2017? 500 50 00p + 300 b $695,000 d. None of the above During should reflect only the following: b. Decrease 6 kash, the balance will be paid in January 2017. Transaction analysis of operating expenses 2016, CliffCo Inc. incurred operating expenses of $250,000, of which $150.000 was paid arft for 2016 stockholders' equity, $150,000, decrease assets, $150,000. e assets, $250,000; decrease stockholders' equity, $250,000. c. Decrease stockholders ' equity, $250,000 decrease assets, $150,000. i $100,000, Decrease assets, $250.000 increase liabilities, $100,000, decrease stockholders $150,000 e. None of the above is correct , Which of the following is the entry to be recorded by a law firm when it receives a $2,000 retainer from a new client at the initial client meeting? a. Debit to Cash, $2,000; credit to Legal Fees Revenue, $2,000. b. Debit to Accounts Receivable, $2.000, credit to Legal Fees Revenue, $2,000. Debit to Unearned Revenue, $2,000; credit to Legal Fees Revenue, $2.000. d. Debit to Cash, $2,000; credit to Unearned Revenue, $2,000. e. Debit to Unearned Revenue, $2,000, credit to Cash, $2,000. 8. You have observed that the net profit margin ratio for a retail chain has increased steadily over the last three years. The most likely explanation is which of the following? a Salaries for upper management as a percentage of total expenses have decreased over the last three years. b. A successful advertising campaign increased sales companywide, but with no increases in oper- ating expenses. c. New stores were added throughout the last three years, and sales increased as a result of the addi- tional new locations. d. The company began construction of a new, larger main office location three years ago that was put into use at the end of the second year. . Cash payments for salaries are reported in what section of the statement of cash flows? a Operating. b. Investing d. None of the above. las period. How would the receipt of cash impact the following two financial statements this 10. This period? Statement of Cash Flows Inflow from investing Inflow from operations Inflow from operations Inflow from financing Income Statement a Revenue + $100 b. No impact c. Revenue $100 d. No impact