Santa Fe Company was started on January 1, Year 1, when it acquired $9,400 cash by issuing common stock. During Year 1, the company earned cash revenues of $5,600, paid cash expenses of $3,450, and paid a cash dividend of $1,000. Which of the following is true based on this information?
A)The Year 1 statement of cash flows would show net cash inflow from operating activities of $5,600.
B)The December 31, Year 1 balance sheet would show total equity of $8,400.
C)The Year 1 income statement would show net income of $1,150.
D)The Year 1 statement of cash flows would show a net cash inflow from financing activities of $8,400.

Question

Quizplus · Accepted Answer

The Answer of Santa Fe Company was started on January 1, Year 1, when it acquired $9,400 cash by issuing common stock. During Year 1, the company earned cash revenues of $5,600, paid cash expenses of $3,450, and paid a cash dividend of $1,000. Which of the following is true based on this information?
A)The Year 1 statement of cash flows would show net cash inflow from operating activities of $5,600.
B)The December 31, Year 1 balance sheet would show total equity of $8,400.
C)The Year 1 income statement would show net income of $1,150.
D)The Year 1 statement of cash flows would show a net cash inflow from financing activities of $8,400.

Santa Fe Company Was Started on January 1, Year 1