During Year 2, Chico Company earned $3,500 of cash revenue, paid $1,450 of cash expenses, and paid a $950 cash dividend to its stockholders. Based on this information alone, which of the following statements is not true?
A) Net income amounted to $2,050.
B) Total assets increased by $1,100.
C) Cash inflow from operating activities was $2,050.
D) Cash outflow from financing activities was $1,100.

Question

Quizplus · Accepted Answer

The cash outflow from financing activities was $950, not $1,100, as it only includes the cash dividend paid to stockholders.

During Year 2, Chico Company Earned $3,500 of Cash Revenue