On January 1, Year 1, the Mahoney Company borrowed $163,000 cash from Sun Bank by issuing a five-year 8% term note. The principal and interest are repaid by making annual payments beginning on December 31, Year 1. The annual payment on the loa based on the present value of annuity factor would be $40,824. The amount of principal repayment included in the December 31, Year 1 payment is: Multiple Choice $13.040 $37,352 $40.324 Riley Company borrowed $14,000 on April 1, Year 1 from the Titan Bank. The note issued by Riley carried a one year term and a 4% annual interest rate. Riley earned cash revenue of $800 in Year 1 and $400 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 $260 inflow $400 inflow $14.250 outflow