Which of the following statements is CORRECT? Select one: O a. The statement of cash flows shows how items that affect the balance sheet and income statement impact the firm's cash flows. b. If a firm follows generally accepted accounting principles (GAAP), then its reported het income will be identical to its reported net cash flow. c. The numbers shown on balance sheets generally represent market costs. O d. Because companies are required to follow GAAP, two firms in exactly the same operating situation will have exactly the same financial statement. e. The balance sheet gives us a picture of the firm's financial situation over a period of time. Sanguillen Corp. showed retained earnings of $500,000 on its balance sheet for 2007. In 2008, the company's earnings per share (EPS) were $1.50 and its dividends paid per share (DPS) were $0.70. The company has 250,000 shares of stock outstanding. What will be the level of retained earnings on the company's 2008 balance sheet? (in 000) 500 Balance of Retained earnings, 12/31/07 Net Income, 2008 Dividends paid Balance of retained earnings, 12/31/08 Select one: a $600,000 b. $700,000 c. $B00.000 d. $900.000 e. $750,000