The 20x2 financial statements for Hart Inc. report retained earnings and cash of $5 million and $20 million, respectively. During 20x2, the firm paid a cash dividend of $5 million. Other things constant, if Hart had not paid the dividend, its:

• Retained earning would be $10mm and cash would be $15mm
• Retained earning would be $10mm and cash would be $25mm
• Retained earning would be $5mm and cash would be $15mm
• Retained earning would be $10mm and cash would be $20mm