Santa Fe Company was started on January 1, 2016, when it acquired $9,700 cash by issuing common stock. During 2016, the company earned cash revenues
Santa Fe Company was started on January 1, 2016, when it acquired $9,700 cash by issuing common stock. During 2016, the company earned cash revenues of $6,050, paid cash expenses of $3,600, and paid a cash dividend of $1,150. Based on this information, which is true?
a) The 2016 statement of cash flows would show net cash inflow from operating activities of $2,450.
b) The 2016 income statement would show net income of $1,300.
c) The 2016 statement of cash flows would show a net cash flow from financing activities of $9,700.
d) The December 31, 2016 balance sheet would show total equity of $15,750.
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Fundamental Financial Accounting Concepts
Authors: Thomas Edmonds, Christopher Edmonds
9th edition
9781259296802, 9781259296758, 78025907, 1259296806, 9781259296765, 978-0078025907
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