Meditate to Elevate is a yoga and meditation studio. The company uses the cash basis of accounting to account for its transactions. At the beginning of May, the company's accounting records showed the following balances: During May, the company received $2,400 in cash for monthly memberships and drop in class fees. Cost of operations for the month included the following: rent $500, teacher wages $400, studio supplies $100, and utilities $300. The company also paid $1,500 of principal on the notes payable and a cash dividend of $700 to its sole owner. Which of the following statements is correct? The company's cash flows from operating activities during May equalled $1,100. The company's total assets on May 31 st were $7,400. The company's total liabilities on May 31 st were $2,450. The company's retained earnings on May 31 st were $3,450. The company's net income for May equalled $400