Indicate by letter whether each of the transactions listed below increases (I), decreases (D), or has no effect (N) on retained earnings. Assume the shareholders’ equity of the transacting company includes only common stock, paid-in capital—excess of par, and retained earnings at the time of each transaction. (Some transactions have two possible answers. Indicate both.) Transactions
N 1 Sale of common stock
2 Purchase of treasury stock at a cost less than the original issue price
3 Purchase of treasury stock at a cost greater than the original issue price
4 Declaration of a property dividend
5 Sale of treasury stock for more than cost
6 Sale of treasury stock for less than cost
7 Net income for the year
8 Declaration of a cash dividend
9 Payment of a previously declared cash dividend
10 Issuance of convertible bonds for cash
11 Declaration and distribution of a 5% stock dividend
12 Retirement of common stock at a cost less than the original issue price
13 Retirement of common stock at a cost greater than the original issue price
14 A stock split effected in the form of a stock dividend
15 A stock split in which the par value per share is reduced (not effected in the form of a stock dividend)
16 A net loss for the year

Astudent was asked to draw a demand and supply graph to illustrate the effect on the market for premium bottled water of a fall in the price of electrolyteselectrolytes used in some brands of premium bottled​ water, holding everything else constant. she drew the graph to the right and explained it as​ follows: ​"electrolyteselectrolytes are an input to some brands of premium bottled​ water, so a fall in the price of electrolyteselectrolytes will cause the supply curve for premium bottled water to shift to the right​ (from upper s 1s1 to upper s 2 right parenthesis .s2). because this shift in the supply curve results in a lower price left parenthesis upper p 2 right parenthesis commap2, consumers will want to buy more premium bottled water and the demand curve will shift to the right​ (from upper d 1d1 to upper d 2 right parenthesis .d2). we know that more premium bottled water will be​ sold, but we​ can't be sure whether the price of premium bottled water will rise or fall. that depends on whether the supply curve or the demand curve has shifted farther to the right. i assume that the effect on supply is greater than the effect on​ demand, so i show the final equilibrium price left parenthesis upper p 3 right parenthesisp3 as being lower than the initial equilibrium price left parenthesis upper p 1 right parenthesis .p1.​" where is the flaw in the​ student's argument? supply will shift inward. demand will not shift. demand will shift inward.