Rushmore Company provided services for $40,500 cash during Year 1. Rushmore incurred $29,000 of operating expenses on account during Year 1, and by the end of the year, $11,500 of that amount had been paid with cash. If these are the only accounting events that affected Rushmore during Year 1, which of the following statements is true?

Multiple Choice

• The amount of net loss shown on the income statement is $11,500.
• The amount of net income shown on the income statement is $11,500.
• The amount of net income shown on the income statement is $17,500.
• The amount of net cash flow from operating activities shown on the statement of cash flows is $23,000.