Packard Company engaged in the following transactions during Year 1, its first year of operations. (Assume all transactions are cash transactions.)

1) Acquired $1,900 cash from the issue of common stock. 2) Borrowed $1,370 from a bank. 3) Earned $1,550 of revenues cash. 4) Paid expenses of $440. 5) Paid a $240 dividend.

During Year 2, Packard engaged in the following transactions. (Assume all transactions are cash transactions.)

1) Issued an additional $1,275 of common stock. 2) Repaid $885 of its debt to the bank. 3) Earned revenues of $1,700 cash. 4) Incurred expenses of $740. 5) Paid dividends of $290.

The net cash inflow from operating activities on Packards statement of cash flows for Year 2 is

a) $960.

b) $1,275.

c) $985.

d) $2,000.