Use the following information to answer the next two questions. On May 1, Year 1, Arrow Company borrowed $10,000 from the State Bank at 9 percent annual interest. The note issued by Arrow had a one-year term. Arrow reported cash revenue of $3,400 and $800 in Year 1 and Year 2, respectively. 5. Arrow's net income for Year 1 and Year 2 would be a. $2,500/$100. b. $2,800/$500. c. $2,400/$800. d. $2,500/$800