A company has $1,000 in revenue, $200 in COGS, and $700 in operating expenses, and no other expenses. Walk through what happens on the 3 statements if half of the company's Income Taxes shift from current to deferred.

a) Income Statement: Decrease in net income, Cash Flow Statement: Increase in operating activities, Balance Sheet: Increase in liabilities.

b) Income Statement: Increase in net income, Cash Flow Statement: Decrease in operating activities, Balance Sheet: Decrease in assets.

c) Income Statement: Decrease in net income, Cash Flow Statement: No change, Balance Sheet: Increase in assets.

d) Income Statement: Increase in net income, Cash Flow Statement: Increase in financing activities, Balance Sheet: Decrease in equity.