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| Bratt Corporation Balance Sheet Dec. 31, 2012 and 2011 | | |
| Assets: | 2012 | 2011 |
| Cash | 90,000 | 10,000 |
| Accounts Receivable | 6.000 | 8.000 |
| Inventory | 9,000 | 15,000 |
| | | |
| Property, Plant, and Equipment | | |
| Land | 180,000 | 150,000 |
| Building | 250,000 | 250,000 |
| Less: Accumulated Depreciation | (30,000) | (20,000) |
| | | |
| Total Assets | 505,000 | 413,000 |
| | | |
| Liabilities: | | |
| Accounts Payable | 5,000 | 3,000 |
| Notes Payable (5years) | 5,000 | 15,000 |
| | | |
| Stockholders' Equity: | | |
| Common Stock | 135,000 | 100,000 |
| Paid in Capital in Excess of Par - CS | 140,000 | 100,000 |
| Retained Earnings | 220,000 | 195,000 |
| Total Liabilities and Equity | 505,000 | 413,000 |
| Bratt Corporation |
| Income Statement |
| For year ended Dec. 31, 2012 |
| |
| Sales 900,000 |
| Cost of Goods Sold 540,000 |
| Gross Profit 360,000 |
| |
| Depreciation Expense 10,000 |
| Selling Expenses 130,000 |
| General and Adm. Expenses 180,000 |
| Total Expenses 320,000 |
| |
| Net Income 40,000 |
How would the Retained Earnings Section be explained on the Statement of Cash Flow? Choose all answers that apply.
Select one or more:
a. Financing Section - Cash paid for dividends - 15,000
b. The Net Income portion of Retained Earnings has been used in the Operating Section - 10,000
c. Financing Section - Increase in Retained Earnings - 25,000
d. It would not be because it doesn't involve cash.
What is the correct option here please?
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