Riley Company borrowed $40,000 on April 1, 2016 from the Titan Bank. The note issued by Riley carried a one year term and a 7% annual interest rate. Riley earned cash revenue of $1,060 in 2016 and $1,500 in 2017. Assume no other transactions.

The amount of net income on the 2017 income statement would be:

$700.

$800.

$(100).

$2,200.

The amount of cash flow from operating activities that would appear on the 2017 statement of cash flows would be:

$800 inflow.

$1,500 inflow.

$1,300 outflow.

$40,800 outflow.

The amount of total liabilities that would appear on Riley's December 31 balance sheets for 2016 and 2017 would be...?