Santa Fe Company was started on January 1, Year 1, when it acquired $9,100 cash by issuing common stock. During Year 1, the company earned cash revenues of $5,150, paid cash expenses of $3,300, and paid a cash dividend of $850. Based on this information, which of the following statements is true?
A) The Year 1 statement of cash flows would show a net cash flow from financing activities of $8,250.
B) The balance sheet at December 31, Year 1 would show total stockholders' equity of $14,250.
C) The Year 1 income statement would show net income of $1,000.
D) The Year 1 statement of cash flows would show net cash inflow from operating activities of $9,100.

Question

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The Answer of Santa Fe Company was started on January 1, Year 1, when it acquired $9,100 cash by issuing common stock. During Year 1, the company earned cash revenues of $5,150, paid cash expenses of $3,300, and paid a cash dividend of $850. Based on this information, which of the following statements is true?
A) The Year 1 statement of cash flows would show a net cash flow from financing activities of $8,250.
B) The balance sheet at December 31, Year 1 would show total stockholders' equity of $14,250.
C) The Year 1 income statement would show net income of $1,000.
D) The Year 1 statement of cash flows would show net cash inflow from operating activities of $9,100.

Santa Fe Company Was Started on January 1, Year 1