[The following information applies to the questions displayed below.]

The following selected accounts and account balances were taken from the records of Nowell Company. Except as otherwise indicated, all balances are as of December 31, 2018, before the closing entries were recorded.

Consulting revenue$10,200Cash7,500Cash received from common stock issued during 20173,100Travel expense450Dividends1,300Cash flow from investing activities2,800Rent expense1,300Payment to reduce debt principal24,900Retained earnings, January 1, 201814,600Salary expense3,200Cash flow from operating activities2,350Common stock, December 31, 20188,100Other operating expenses2,200

1. c-1.Determine the Retained Earnings account balance at December 31, 2018.

2. c-2.Which of the following statement(s) is true?(You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.)

• Net income does not include revenue of the current year.
• unanswered
• Retained earnings does not include current year net income, but only the balance from previous years.
• unanswered
• Retained earnings not only includes current year net income, but also the balance from previous years and reductions for dividends.
• unanswered
• Retained earnings does not include the balance from previous years, but only the reductions for dividends.
• unanswered
• Net income only includes revenues and expenses for the current year.