On January 1,Year 1,Mayer Corporation Signed a Contract to Perform $\text { NA } \quad \text { NA } \quad \text { NA } \quad 25,000$

On January 1,Year 1,Mayer Corporation signed a contract to perform $25,000 worth of services for Phips Company over the next three years.Which of the following indicates the effects of this event on the Year 1 income statement and statement of cash flows of Mayer Corporation?
Cash Flows
Net Income Operating Investing Financing

A) $\text { NA } \quad \text { NA } \quad \text { NA } \quad 25,000$
B) $25,000 \quad \text { NA } \quad 25,000 \quad \text { NA }$
C) $25,000 \quad 25,000 \quad \text { NA }\quad \text { NA }$
D) NA $\quad$$\quad$ NA $\quad$$\quad$ NA $\quad$$\quad$ NA