Question 8 (1 point) Redmond Company was started on January 2, Year 1. During its first year Redmond Company paid $42,000 for salary expense and accrued $4,000 for salary expense as an adjusting entry at the end of its Year 1 accounting period. Use the horizontal model to determine the incorrect statement. a) Total assets decreased by $46,000. b) Net income decreased by $46,000. c) Retained earnings decreased by $46,000. d) A cash outflow of $42,000 is shown on the statement of cash flows.