Problem: Module 3 Textbook Problem 20 Learning Objective: 3-16 Show how the appropriation of retained earnings affects financial statements On December 30, Billy's Boat Yard (BBY) had $90,000 of cash, $20,000 of liabilities, $30,000 of common stock, and $40,000 of unrestricted retained earnings. On December 31, BBY appropriated retained earnings in the amount of $18,000 for a future remodeling project. Required a. Record the December 31 appropriation in the following statements model. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (1A), or financing activity (FA). If an element was not affected by the event, leave the cell blank. b. Determine the amount of dividends that BBY can pay immediately after the December 31 appropriation c. Determine the total amount of retained earnings immediately after the December 31 appropriation. d. Determine the total amount of cash immediately after the December 31 appropriation. Complete this question by entering your answers in the tabs below. Reg A Req B to D Record the December 31 appropriation in the following statements model. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). If an element was not affected by the event, leave the cell blank. (Enter any decreases to account balances with a minus sign.) Show less BBY CO. Horizontal Statements Model Balance Sheet Income Statement Statement Assets = Liabilities + Stockholders' Equity Revenue - Expense - of Cash Income Flow Cash Common Retained Appropriated Stock Retained Earnings Earnings Net + Reg A Req B to D > Complete this question by entering your answers in the tabs below. Reg A Req B to D b. Determine the amount of dividends that BBY can pay immediately after the December 31 appropriation. c. Determine the total amount of retained earnings immediately after the December 31 appropriation. d. Determine the total amount of cash immediately after the December 31 appropriation. Show less Dividends that BBY can pay immediately after the December b. 31 appropriation Retained earnings immediately after the December 31 appropriation d. Cash immediately after the December 31 appropriation