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ParisStyle, a fashion retailer, had the following data for fiscal year ende 2015: ...

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Accounting

ParisStyle, a fashion retailer, had the following data for fiscal year ende 2015:
Assets, December 31,2014
Assets, December 31,2015
Liabilities, December 31,2014
Liabilities, December 31,2015
Paid in capital, December 31,2014
Paid in capital, December 31,2015
Retained earnings, December 31,2014
$3,088
Retained earnings, December 31,2015
Sales and other revenues, 2015
3,062
Cost of sales and all other expenses, 2014
A
B
Net income 2015
227
Dividends declared and paid, 2014
Required:
a. Find the unknowns, showing computations to support your answer.
47
1,074
C
5,124
4,921
D
44
b. ParisStyle is contemplating the following change in its accounting policies:
Recording purchases as expenses on purchase date.
What accounting concept would this change violate?
What would be the qualitative impact (increase, decrease, no change) of such an accounting policy (assuming it was adopted on the day the company was incorporated) on the following:
(i) Retained earnings, December 31,2015; and (ii) Net income, 2015?
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