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Riley Company borrowed $ 5 2 , 0 0 0 on April 1 , Year 1 from Titan Bank. The note issued by Riley carried

Riley Company borrowed $52,000 on April 1, Year 1 from Titan Bank. The note issued by Riley carried a one-year term and a 8% annual interest rate. Riley earned cash revenues of $1,180 during Year 1 and $2,100 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
$1,060 inflow.
$2,100 inflow.
$53,060 outflow.
$2,060 outflow.

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