Please answer the following question in Word Excel.

P3-6 Effect of net income on a firm's balance sheet Conrad Air Inc. reported net income of $1,365,000 for the year ended December 31, 2020. Show how Conrad's balance sheet would change from 2019 to 2020 depending on how Conrad spent those earnings as described in the scenarios that appear below. Conrad Air Inc. Balance Sheet as of December 31, 2019 Assets Cash Marketable securities Accounts receivable Inventories Current assets Equipment Buildings Fixed assets Total assets $ 120,000 35,000 45,000 $ 130,000 $ 330,000 $2,970,000 1,600,000 $4,570,000 $4,900,000 Liabilities and Stockholders' Equity Accounts payable $ 70,000 Short-term notes 55,000 Current liabilities $ 125,000 Long-term debt 2,700,000 Total liabilities $2,825,000 Common stock $ 500,000 Retained earnings 1,575,000 Stockholders' equity $2,075,000 Total liabilities and equity $4,900,000 a. Conrad paid no dividends during the year and invested the funds in marketable securities. b. Conrad paid dividends totaling $500,000 and used the balance of the net income to retire (pay off) long-term debt. c. Conrad paid dividends totaling $500,000 and invested the balance of the net income in building a new hangar. d. Conrad paid out all $1,365,000 as dividends to its stockholders