ABC Company began Year 2 with $100,000 in Cash and Common Stock. On March 1 of Year 2, ABC Company loaned $50,000 to Deb Tor Inc. for one year at 12% interest. Deb Tor Inc. repaid the principal and interest on Feb 28, Year 3.

How would the Year 3 Statement of Cash Flows be affected by these note transactions?

Group of answer choices

$50,000 inflow from financing activities & $6,000 inflow from operating activities

$50,000 inflow from financing activities & $1,000 inflow from operating activities

$50,000 inflow from investing activities & $6,000 inflow from operating activities

$50,000 inflow from investing activities & $1,000 inflow from operating activities

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