Assume the "Net Income After Taxes" is $5,000. Next, assume that the owner made a change and is now taking $2,500 in "owner's draw." After this change, what is one other adjustment would you expect to see on the Coordinated Financial Statement?
a) If the average tax rate was 10%, taxes paid should increase by $250
b) Retained Earnings should increase by $2,500
c) Total liabilities will now be increased by $2,500
d) Cash and Marketable Securities should increase by $2,500
e) Cannot determine with the provided information
f) Total assets will now be decreased by $2,500
