Taylor Tools has sales of $400,000 in Year 1. Taylor warrants its products and estimates warranty expense to be 4% of sales. Which of the following shows how the year-end adjusting entry would affect the company's assets, liabilities, and cash flow from operating activities? A. B. C. D. Total Assets $ (16,000) $ 16,000 Multiple Choice O Option D Option C Option B Option A Liabilities $ 16,000 $ 16,000 $ 16,000 $ (16,000) Cash Flow from Operating Activities $ (16,000)