St. Clair Motor Supplies had the following transactions during December:

• Paid a note of $17,000 owed since March plus $425 for interest.
• Sold $36,525 of merchandise to customers on account. Cost of goods sold was $21,250.
• Paid accounts payable of $2,050.

As a result of these transactions, at year-end, liabilities and stockholders' equity would show a total:

Select one:

a. Decrease by $4,800

b. Increase by $13,425

c. Decrease by $4,200

d. Decrease by $4,575