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

Depreciation $40

Accrued Revenue $75

Accrued Expense $100

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

Select one:

a.

Decrease $25, Decrease $25

b.

Decrease $25, Increase $15

c.

Decrease $15, Increase $65

d.

Decrease $65, Decrease $25

e.

Decrease $65, Decrease $65