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On January 1, Year 2, Grande Company had a $67,600 balance in the Accounts Receivable account and a $2,200 balance in the Allowance for Doubtful

On January 1, Year 2, Grande Company had a $67,600 balance in the Accounts Receivable account and a $2,200 balance in the Allowance for Doubtful Accounts account. During Year 2, Grande recognized $173,000 of service revenue earned on account. The company collected $197,900 cash from accounts receivable. Uncollectible accounts are estimated to be 1% of sales on account.

Based on this information, the amount of cash flow from operating activities that would appear on the Year 2 statement of cash flows is:

A)$197,900.

B)$1,730. C)$2,430. D)$41,200.

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