15. Required information

On May 1 of Year 1 Matthew Company paid $2,400 cash for an insurance policy that would protect the company for one year. The company's fiscal closing date is December 31. Based on this information, the amount of insurance expense and the cash flow from operating activities shown on the Year 1 financial statements would be

Insurance Expense Cash flow $1,600 ($2,400)

Insurance Expense Cash flow $1,600 ($800)

Insurance Expense Cash flow $2,400 ($1,600)

Insurance Expense Cash flow $1,600 $800