Luz Azul, LLC is a merchandiser of blue light blocking glasses. The company began 2019 with $10,000 in cash and reported net income of $6,700 on its 2019 income statement. During the year a loss of $250 was reported on the cash sale of a piece of equipment with a book value of $1,000. A new piece of equipment was purchased at a cost of $8,500 to replace the equipment that was sold. The company paid $1,500 from its available cash balance to purchase the equipment and took out a cash long-term note payable from its bank for the remaining balance. All dividends declared during 2019 were paid in 2019. There was not a balance in the dividends payable account at the beginning of the year. There was a $250 net decrease in retained earnings during the year. Given a reported positive cash flow of $500 from its operating activities during the year, which of the following statements isincorrect?

A. The company’s net cash flows from financing activities were$50.

B. The ending cash reported on the balance sheet was$2,800.

C. The company operated within its means during the year.

D. The company’s cash decreased by $7,200 during the year.

E. The company’s investing activities used $750 more in cash than they provided

Answer rating: 100% (QA)

Dividends paid Net incomeDecrease in Retained Earnings 6700250 6950 The companys net ... View the full answer