Franklin Company obtained a $135,000 line of credit from the State Bank on January 1, Year 1. The company agreed to accept a variable interest rate that was set at 3% above the bank's prime lending rate. The bank's prime rate of Interest and the amounts borrowed or repaid during the first three months of Year 1 are shown in the following table. Assume that Franklin borrows or repays on the first day of each month. Borrowing is shown as a positive amount and repayments are shown as negative amounts Indicated by parentheses. Amount Borrowed Prime Rate for the (Repaid) Month 1-January $ 42,000 1-February (16,000) 4.58 1-March 42,000 5.08 Based on this information alone, the amount of interest expense recognized in March would be closest to: (Do not round intermediate calculations. Round your answer to the nearest whole number.) 4.08 Multiple Choice $453 $255 $283 5.US Based on this information alone, the amount of interest expense recognized in March would be closest to: (Do not round Intermediate cal Round your answer to the nearest whole number.) Multiple Choice $453 $255 O O $283. O $227 Riley Company borrowed $50,000 on April 1, Year 1 from the Titan Bank. The note issued by Riley carried a one year term and a 7% annual interest rate Riley earned cash revenue of $1160 In Year 1 and $1,800 in Year 2. Assume no other transactions. The amount of cash flow from operating activities that would appear on the Year 2 statement of cash flows would be Multiple Choice $1.800 inflow $1700 outflow $50,925 outlow $925 inflow