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

• Depreciation $75
• Accrued Revenue $100
• Accrued Expense $40

Indicate the net effect of these three entries on Net Income and Working Capital, respectively:

Select one:

a.

Increase $25, Increase $25

b.

Decrease $15, Decrease $15

c.

Decrease $15, Increase $60

d.

Decrease $65, Decrease $65

e.

Decrease $65, Increase $25