Required Information [The following information applies to the questions displayed below.) Cheese Factory Incorporated reported the following information for the fiscal year ended August 31, 2018. Accounts Payable Accounts Receivable Cash (balance on September 1, 2017) Cash (balance on August 31, 2018) Common Stock Dividends Equipment Notes Payable Office Expenses Prepaid Rent Retained Earnings (beginning) Salaries and Wages Expense Salaries and Wages Payable Sales Revenue Supplies Utilities Expense $ 164,000 34,000 94,000 119,000 100,000 11,000 774,000 49,000 190,000 81,000 429,000 1,050,000 189,000 2,004,000 51,000 625,000 Other cash flow information: Additional Investments by stockholders Cash paid to purchase equipment Cash paid to suppliers and employees Repayments of borrowings Cash received from customers Cash received from borrowings Dividends paid in cash $ 55,000 63,000 1,544,000 174,000 1,756,000 6,000 11,000 2-a. What would Cheese Factory's 2018 net income have been had it given a 4 percent pay increase to all employees on September 1, 2017? (Input the amount as a positive value.) Net decreased to $ 77,000