On January 1, Year 1, Mayer Corporation signed a contract to perform $25,000 worth of services for Phips Company over the next three years. Which of the following indicates the effects of this event on the Year 1 income statement and statement of cash flows of Mayer Corporation? Net Option Income A C 25,000 25,000 Option B O Option C O Option A Option D Operating 25,000 Cash Flows Investing 25,000 NA Financing 25,000