[The Following Information Applies to the Questions Displayed Below

Multiple Choice

[The following information applies to the questions displayed below.]

Riley Company borrowed $36,000 on April 1, Year 1 from Titan Bank. The note issued by Riley carried a one-year term and a 7% annual interest rate. Riley earned cash revenues of $1,700 during Year 1 and $1,400 during Year 2. Assume no other transactions.

-Based on this information alone,what amount of cash flow from operating activities would appear on the Year 2 statement of cash flows?

A) $770 inflow
B) $1,400 inflow
C) $38,520 outflow
D) $1,120 outflow