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Required information [The following information applies to the questions displayed below.] Riley Company borrowed $28,000 on April 1, Year 1 from Titan Bank. The note
Required information
[The following information applies to the questions displayed below.]
Riley Company borrowed $28,000 on April 1, Year 1 from Titan Bank. The note issued by Riley carried a one-year term and a 6% annual interest rate. Riley earned cash revenues of $940 during Year 1 and $900 during Year 2. Assume no other transactions.
Based on this information alone, what amount of cash flow from operating activities would appear on the Year 2 statement of cash flows?
Multiple Choice
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$900 inflow.
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$28,480 outflow.
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$480 inflow.
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$780 outflow.
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