please answer these two parts of the same question

5. Shareholders' equity ween the company's assets and liabilities. O Equity is the initial claim on value of the assets before the firm pays off ts liabilities. NOW Inc. released its annual results and financial statements. Grace is reading the summary in the business pages of today's paper In its annual report this year, NOW Inc. reported a net income of $176 million. Last year, the company reported a retained earnings balance of $476 million, $92 million O $3 million O $260 million O $465 million