Question

During Year 2, Chico Company earned $1,950 of cash revenue, paid $1,600 of cash expenses, and paid a $150 cash dividend to its stockholders. Based on this information alone, which of the following statements is not true?

a. Net income amounted to $350.
b. Total assets increased by $200.
c. Cash inflow from operating activities was $350.
d. Cash inflow from operating activities was $200.

Answer 1

Answer:d--Cash inflow from operating activities was $200

Step-by-step explanation:

Net income= Cash Revenue -Cash Expenses

$1950 - $,1600 = $350

Total assets increase= Cash Revenue -Cash Expenses -Dividends

1950-1600 -150= $200

Cash inflow from operating activities=Cash Revenue -Cash Expenses

$1950 - $,1600 = $350

therefore the statement that is not true = d--Cash inflow from operating activities was $200