Question
Riley Company borrowed $50,000 on April 1, Year 1 from Titan Bank. The note issued by Riley carried a one-year term and a 7% annual
Riley Company borrowed $50,000 on April 1, Year 1 from Titan Bank. The note issued by Riley carried a one-year term and a 7% annual interest rate. Riley earned cash revenues of $1,160 during Year 1 and $1,800 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?
Based on this information alone, what amount of cash flow from operating activities would appear on the Year 2 statement of cash flows?
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$1,700 outflow.
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$50,925 outflow.
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$1,800 inflow.
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$925 inflo
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