ParisStyle, a fashion retailer, had the following data for fiscal year ende $2015$:

Assets, December $31,2014$

Assets, December $31,2015$

Liabilities, December $31,2014$

Liabilities, December $31,2015$

Paid in capital, December $31,2014$

Paid in capital, December $31,2015$

Retained earnings, December $31,2014$

$$3,088$

Retained earnings, December $31,2015$

Sales and other revenues, $2015$

$3,062$

Cost of sales and all other expenses, $2014$

A

B

Net income $2015$

$227$

Dividends declared and paid, $2014$

Required:

a$.$ Find the unknowns, showing computations to support your answer.

$47$

$1,074$

C

$5,124$

$4,921$

D

$44$

b$.$ ParisStyle is contemplating the following change in its accounting policies:

Recording purchases as expenses on purchase date.

What accounting concept would this change violate?

What would be the qualitative impact $($increase$,$ decrease, no change$)$ of such an accounting policy $($assuming it was adopted on the day the company was incorporated$)$ on the following:

$($i$)$ Retained earnings, December $31,2015$; and $($ii$)$ Net income, $2015?$