please explain the answer, thx!

Sparky Company experienced the following transactions during 2015: A. Issued Common Stock to investors in exchange for $5,000 cash. B. Provided $1,200 of services on account. C. Received $1,000 cash from customer for services to be performed over the next 3 months. D. Purchased $500 of supplies on account. E. Collected $900 of cash from accounts receivable. F. Paid $350 cash on accounts payable G. Supplies of $200 were used during 2015 H. Completed 75% of the work for customer from transaction "C" above 1. Paid monthly wages of $400 and utilities of $300. The amount of Net Income recognized on Sparky Company's 2015 Income Statement is: $350 $1,050 $1.600 $1.950