On September 1, Year 1 Western Company loaned $36,000 cash to Eastern Company. The one-year note carried a 5% rate of interest. The amount of interest revenue on the income statement and the amount of cash flow from operating activities shown on Western’s December 31, Year 1 financial statements would be

$600 interest revenue and $1,800 cash flow from operating activities.

$1,200 interest revenue and $1,800 cash flow from operating activities.

$600 interest revenue and zero cash flow from operating activities.

$1,200 interest revenue and zero cash flow from operating activities.