Santa Fe Company was started on January 1, Year 1, when it acquired $8800 cash by issuing common stock. During Year 1, the company earned cash revenues of $4700, paid cash expenses of $3150, and paid a cash dividend of $700. Which of the following is true based on this information?
A. The Year 1 statement of cash flows would show a net cash inflow from financing activities of $8100.
B. The December 31, Year 1 balance sheet would show total equity of $8100.
C. The Year 1 income statement would show net income of $850.
D. The Year 1 statement of cash flows would show net cash inflow from operating activities of $4700.
Answer: A
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