Nelson Company Experienced the Following Transactions During Year 1, Its

question 5

Multiple Choice

Nelson Company experienced the following transactions during Year 1, its first year in operation.Acquired $12,000 cash by issuing common stockProvided $4,600 of services on accountPaid $3,200 cash for operating expensesCollected $3,800 of cash from customers in partial settlement of its accounts receivablePaid a $200 cash dividend to stockholdersWhat is the amount of net cash flows from operating activities that will be reported on the Year 1 statement of cash flows?

• A)$400
• B)$600
• C)$1,400
• D)$1,200

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