On January 1, Year 2 Grande Company had a $12,000 balance in the Accounts Receivable account and a zero balance in the Allowance for Doubtful Accounts account. During Year 2, Grande provided $60,000 of service on account. The company collected $56,500 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?

A. $56,500

B. $60,000

C. $48,240

D. $55,370