ABC Company ended Year 1 with the following account balances:Cash 600, Common Stock 400, and Retained Earnings 200.The following transactions occurred during Year 2:• Issued common stock for $19,000 cash.• ABC borrowed an additional $11,000 from Chris Bank.• ABC earned $9,000 of revenue on account.• ABC incurred $4,000 of operating expenses on account.• Cash collections of accounts receivables were $6,000.• ABC provided additional services to customers for $1,000 cash.• ABC purchased land for $14,000.• ABC used $3,000 in cash to make a partial payment on its accounts payable.• ABC declared and paid a $200 dividend to the stockholders• On December 31 ABC had accrued salaries of $4,000.What is the net cash flow from operating activities shown on the statement of cash flows for the year ending December 31, Year 2?Multiple ChoiceOO$4,000$3,800$6,000None of these answer choices is correct.

The cash flow statement shows the cash inflow and cash outflow due to the operating activities,…

Answered: ABC Company ended Year 1 with the…

Business

Accounting

ABC Company ended Year 1 with the following account balances:

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter21: Corporations: Taxes, Earnings, Distributions, And The Statement Of Retained Earnings

Section: Chapter Questions

Problem 2CE

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