On January 1, Year 2 Grande Company had a $11,000 balance in the Accounts Receivable account and a zero balance in the Allowance for Doubtful Accounts account. During Year 2, Grande provided $58,000 of service on account. The company collected $54,500 cash from accounts receivable. Uncollectible accounts are estimated to be 2% of sales on account.

What is the amount of cash flow from operating activities that would appear on the Year 2 statement of cash flows?

Multiple Choice

$53,410

$54,500

$58,000

$47,220