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 outflow from financing activities was $200.

Question

Quizplus · Accepted Answer

The cash outflow from financing activities was $150, not $200, as the only financing activity mentioned is the payment of a $150 cash dividend.

During Year 2, Chico Company Earned $1,950 of Cash Revenue