Use i = increase, d = decrease, or n = no effect, to indicate the effect on retained earnings for each of the listed transactions.

a net loss for the year.

a stock split effected in the form of a stock dividend.

a stock split in which the par per share is reduced (but not effected in the form of a stock dividend).

declaration of a 5% stock dividend.

declaration of a cash dividend.

issue stock for noncash assets.

payment of previously declared cash dividend.

retirement of common stock at a cost greater than the original issue price.

retirement of common stock at a cost less than the original issue price.

resale of treasury stock for less than carrying value assuming no previous treasury stock sales.

1. all other things equal, according to the law of demand, when the price of a good falls, the demand for the good falls the demand for the good rises the quantity demanded of the good falls the quantity demanded of the good rises 2. when a market is in equilibrium, the quantity of the good that buyers are willing and able to buy exactly equals the quantity that sellers are willing and able to sell cannot be determined is less than the quantity that sellers are willing and able to sell is greater than the quantity that sellers are willing and able to sell 3. which of the following factors does not influence the demand for a good or service? consumer (buyer) income the price of related goods the number of sellers buyer expectations 4. when the number of sellers in a market increases, demand rises supply rises the price rises, all else equal the number of buyers falls