On November 1,Year 1,Falloch,Inc.paid $3,600 cash for a contract allowing the company to use office space for one year.The company's fiscal closing date is December 31.Based on this information,the amount of cash flow from operating activities appearing on the Year 1 statement of cash flows would be

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The cash outflow is not affected by how much of the office space has or has not been used. Since $2,400 cash was paid in Year 1, there would be a $2,400 cash outflow from operating activities shown on the Year 1 statement of cash flows. There would be zero cash flow shown on the Year 2 statement of cash flows.