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, Year 2, before the closing entries were recorded. Consulting revenue $ 9,500 Cash 7,200 Cash received from common stock issued during Year 1 3,700 Travel expense 750 Dividends 900 Cash flow from investing activities 2,300 Rent expense 1,700 Payment to reduce debt principal 18,000 Retained earnings, January 1, Year 2 14,100 Salary expense 3,200 Cash flow from operating activities 2,400 Common stock, December 31, Year 2 Other operating expenses 9,900 2,200 Required a. Prepare the income statement Nowell would include in its Year 2 annual report. b. Identify the accounts that should be closed to the Retained Earnings account. c-1. Determine the Retained Earnings account balance at December 31, Year 2. c-2. Which of the following statement(s) is true?