Problem 2 (15%) Part A In Review Question #4 on text p. 83. item b is "pay employees' salaries for the current month." As noted on page 3 of the Transaction Analysis lecture, we correctly analyze this transaction as follows: Assets Liabilities Stockholders' Equity Paid this month for current month's salaries, - (Cash) - (Salary Expense) Required: In the spaces below, correctly analyze the following variations of the above entry. Assume the firm prepares financial statements monthly: Assets Liabilities + Stockholders' Equity The entire payment to employees this month is for last month's salaries. Assets Liabilities + Stockholders' Equity The entire payment to employees this month is a salary advance for work they will perform next month. Part B In early 2017, an analyst who follows the stock of a well-known retailer was looking at a series of two-year calculations for the firm's days' sales in accounts receivable: 2012 2014 2016 DSAR 65 days 62 days 5 days The analyst cannot understand what could have caused the sharp decline in DSAR over the 2014-2016 period. Did most customers start paying cash for their purchases, he wonders? Describe the most likely reason for the sharp decline in the retailer's DSAR. 4