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

1) Acquired $1,750 cash from the issue of common stock.

2) Borrowed $1,220 from a bank.

3) Earned $1,400 of revenues cash.

4) Paid expenses of $410.

5) Paid a $210 dividend.

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

1) Issued an additional $1,125 of common stock.

2) Repaid $780 of its debt to the bank.

3) Earned revenues of $1,550 cash.

4) Incurred expenses of $680.

5) Paid dividends of $260.

What is the amount of Packard Company's net cash flow from financing activities for Year 2?

Multiple Choice

Net outflow of $780.

Net inflow of $85.

Net outflow of $1,040.

Net inflow of $865.