Santa Fe Company Was Started on January 1,Year 1,when It

question 28

Multiple Choice

Santa Fe Company was started on January 1,Year 1,when it acquired $9,000 cash by issuing common stock.During Year 1,the company earned cash revenues of $4,500,paid cash expenses of $3,750,and paid a cash dividend of $250.Which of the following is true based on this information?

• A)The December 31,Year 1 balance sheet would show total equity of $8,750.
• B)The Year 1 income statement would show net income of $500.
• C)The Year 1 statement of cash flows would show net cash inflow from operating activities of $4,500.
• D)The Year 1 statement of cash flows would show a net cash inflow from financing activities of $8,750.

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