A New Firm Issued $500 in Common Stock

Multiple Choice

A new firm issued $500 in common stock. At the end of the first year, the firm had total assets of $1100 and total debt of $400. What was the amount of net income for the first year, assuming the firm paid no dividends?

A) -$200 (a loss)
B) $200
C) $700
D) $1200
E) Cannot be determined from the information provided