The retained earnings statement

	A.	will, in some cases, fail to reconcile the beginning and ending retained earnings balances.
	B.	is the owners' equity statement for a corporation.
	C.	will not reflect net losses.
	D.	will show an addition to the beginning retained earnings balance for an understatement of net income in a prior year.

Vega Corporation's December 31, 2013 balance sheet showed the following: 8% preferred stock, $20 par value, cumulative, 15,000 shares authorized; 10,000 shares issued $200,000 Common stock, $10 par value, 1,000,000 shares authorized; 975,000 shares issued, 960,000 shares outstanding $9,750,000 Paid-in capital in excess of parpreferred stock $30,000 Paid-in capital in excess of parcommon stock $13,500,000 Retained earnings $3,750,000 Treasury stock (15,000 shares) $315,000 Vega's total paid-in capital was

	A.	$23,165,000.
	B.	$23,795,000.
	C.	$23,480,000.
	D.	$13,530,000.

Accounts receivable arising from sales to customers amounted to $45,000 and $50,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $160,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is

	A.	$155,000.
	B.	$160,000.
	C.	$205,000.
	D.	$165,000.