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.

Answer rating: 100% (QA)

Option A is correct The 2016 statement of cash ... View the full answer