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You have uploaded an image that outlines the impact of net income on Conrad Air, Inc.'s balance sheet under three different scenarios:

1. **Scenario a**: Conrad paid no dividends and invested the net income in marketable securities.
2. **Scenario b**: Conrad paid dividends of $496,000 and used the remaining income to pay off long-term debt.
3. **Scenario c**: Conrad paid dividends of $496,000 and used the rest of the income to build a new hangar.

The net income for the year 2022 is $1,369,000. The balance sheet provided is for the year ended December 31, 2021, with total assets of $4,899,000.

### Steps to Update the Balance Sheet for Each Scenario:
- **Scenario a**: Add the full net income to marketable securities.
- **Scenario b**: Reduce long-term debt by the remaining amount after paying dividends, which is $1,369,000 - $496,000 = $873,000.
- **Scenario c**: Add the remaining $873,000 to the fixed assets under buildings to reflect the construction of the new hangar.

Would you like a detailed breakdown of the balance sheet changes for each scenario?

Show how Conrad's balance sheet would change from 2021 to 2022 depending on how Conrad 'spent' those earnings as described in the scenarios.

Explore how Conrad Air, Inc.'s balance sheet changes based on three scenarios for spending its net income of $1,369,000 in 2022. Analyze dividends, debt repayment, and asset investment with a detailed breakdown of each scenario.

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