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 owners. Based on this information alone, which of the following is not correct?
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.

Question

Quizplus · Accepted Answer

Revenue minus expenses equal net income ($1,950 − $1,600 = $350). Total assets increased by $200 ($1,950 − $1,600 − $150). Cash from operating activities increased by $350 ($1,950 − $1,600). Cash from financing activities decreased by $150.

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