A merchandising company began in 2019 with $10,000 in cash and reported net income of $6,700 on its 2019 income statement.

During the year a loss of $250 was reported on the cash sale of a piece of equipment with a book value of $1,000. A new piece of equipment was purchased at a cost of $8,500 to replace the equipment that was sold. The company paid $1,500 from its available cash balance to purchase the equipment and took out a cash long-term note payable from its bank for the remaining balance.

All dividends declared during 2019 were paid in 2019. There was not a balance in the dividends payable account at the beginning of the year. There was a $250 net decrease in retained earnings during the year.

Given a reported positive cash flow of $500 from its operating activities during the year, which of the following statements is incorrect?

A.

The companys cash decreased by $7,200 during the year.

B.

The ending cash reported on the balance sheet was $2,800.

C.

The company operated within its means during the year.

D.

The companys net cash flows from financing activities were $50.

E.

The companys investing activities used $750 more in cash than they provided.