Riley Company Borrowed $36,000 on April 1, Year 1 from the Titan

Riley Company borrowed $36,000 on April 1, Year 1 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 $1,700 in Year 1 and $1,400 in Year 2. Assume no other transactions.The amount of cash flow from operating activities that would appear on the Year 2 statement of cash flows would be:

A) $770 inflow
B) $1,400 inflow
C) $38,520 outflow
D) $1,120 outflow