P$3-8$ Impact of net income on a firm's balance sheet Conrad Air, Inc., reported net income of $$1,365,000$ for the year ended December $31,2013.$ Show how Conrad's balance sheet would change from $2012$ to $2013$ depending on how Conrad "spent" those earnings as described in the scenarios that appear below.

$\backslash$table$[[$Conrad Air, Inc. Balance Sheet as of December $31,2012],[$Assets$,$Liabilities and Stockholders' Equity$],[$Cash$,$S $120,000,$Accounts payable,$$70,000$