ABC Company Ended Year 1 with the Following Account Balances:Cash

question 37

Multiple Choice

ABC Company ended Year 1 with the following account balances:Cash $600, Common Stock $400, and Retained Earnings $200.The following transactions occurred during Year 2:Issued common stock for $19,000 cash.ABC borrowed an additional $11,000 from Chris Bank.ABC earned $9,000 of revenue on account.ABC incurred $4,000 of operating expenses on account.Cash collections of accounts receivables were $6,000.ABC provided additional services to customers for $1,000 cash.ABC purchased land for $14,000.ABC used $3,000 in cash to make a partial payment on its accounts payable.ABC declared and paid a $200 dividend to the stockholdersOn December 31 ABC had accrued salaries of $4,000.
-What is the net cash flow from operating activities shown on the statement of cash flows for the year ending December 31, Year 2?

• A) $4,000
• B) $3,800
• C) $6,000
• D) None of these answer choices is correct

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