Use the following information to answer the next 4 questions.

ABC Corp. was founded on 1/1/2018. The initial balance sheet is as follows:

Balance Sheet-1/1/2018
Assets	Liabilities and Owners Equity
Cash 7000	Debt	3500
Long Term Assets 500	Stock	4000
Total 7500	Total	7500

Suppose that the following transactions occurred between 1/1/2018 and 1/31/2018:

Inventory purchase of $1200 (due on 2/15/2018)

$950 worth of cash sales (paid in cash)

$1000 worth of credit sales (due on 3/31/2018)

Operating Accruals of $75

Depreciation of $90

Taxes of $100 (paid on 1/15/18)

Interest of $20 (paid on 1/20/18)

1. Which of the following will occur on the company's balance sheet as a result of the credit sales?

		The cash account will increase and an accounts payable entry will be created.
		The cash account will decrease and an accounts receivable entry will be created.
		The cash account will be unaffected and an accounts receivable entry will be created.
		The cash account will be unaffected and an accounts payable entry will be created. 2.What is the cash entry balance on the 1/31/18 balance sheet? 3. What is the retained earnings entry on the 1/31/2018 balance sheet? 4. What is the companys operating profit on 1/31/2018 if the company's COGS is 800?