Question

During Year 2, Chico Company earned $3,200 of cash revenue, paid $1,350 of cash expenses, and paid a $850 cash dividend to its stockholders. Based on this information alone, which of the following statements is not true?A) Total assets increased by S1000 B) Cashow to coating activities was $1,000 C) Net income amounted to $1850D) Cashow from operating acties was $1850

Answer 1

Answer:

B) Cash inflow from operating activities was $1,000.

Explanation:

The first statement is true because we notice the Total assets actually increased by $1,000 when we subtract Cash Revenue - Cash Expenses ($3200 - $1350 - $850  =$1000. The same is true for all the other options except for option B because the cash inflow from operating activities wasn't mentioned.