QUESTION 10 On its 12/31/19 balance sheet, Silver Springs Inc showed $510 million of retained earnings, and exactly that same amount was shown the following year. Assuming that no earnings restatements were issued, which of the following statements is CORRECT? a. If the company lost money in 2019, it must have paid dividends. The company must have had zero net income in 2019. Ob. . The company must have paid out half of its 2019 earnings as dividends. OG od. The company must have paid no dividends in 2019. Dividends could have been paid in 2019, but they would have had to equal the earnings for the year. Oe QUESTION 11 Which of the following statements is CORRECT? O a. The balance sheet for a given year is designed to give us an idea of what happened to the firm during that year. b. The balance sheet for a given year tells us how much money the company earned during that year. The difference between the total assets reported on the balance sheet and the liabilities reported on this statement tells us the current market OC value of the stockholders' equity, assuming the statements are prepared in accordance with generally accepted accounting principles (GAAP) If a company's statements were prepared in accordance with generally accepted accounting principles (GAAP), the market value of the stock equals the book value of the stock as reported on the balance sheet. The assets section of a typical company's balance sheet begins with cash, thers lists the assets in the order in which they will probably be Oe converted to cash, with the longest lived assets listed last. Od