The Cooper River Company makes three adjusting entries at 12/31:

Depreciation $100

Prepaid Insurance used $75

Accrued Expense $40

Indicate the net effect of these three entries on these items:

a. Net Income Working Capital Increase $35 Increase $115

b. Net Income Working Capital Decrease $215 Decrease $115

c. Net Income Working Capital Decrease $65 Decrease $65

d. Net Income Working Capital Decrease $215 Decrease $215

e. Net Income Working Capital Increase $35 Decrease $65