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Betsy Company's December 31, Year 1, balance sheet showed $1,900 cash, $500 accounts payable, $400 common stock and $1,000 retained earnings. The company experienced
Betsy Company's December 31, Year 1, balance sheet showed $1,900 cash, $500 accounts payable, $400 common stock and $1,000 retained earnings. The company experienced the following events during Year 2. 1. (1) On April 1, Year 2 the company paid $2,400 cash to rent office space for the coming year starting immediately 2. (2) Earned $3,600 cash revenue 3. (3) Paid a $200 cash dividend Based on this information, the company would report O a $1,200 net cash inflow from operating activities on the Year 2 statement of cash flows. O a $2,600 balance in retained earnings on the Year 2 balance sheet. a $600 balance in a prepaid rent account on the Year 2 balance sheet. O All of the answers are correct.
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