Packard Company engaged in the following transactions during Year 1, its first year of operations: (Assume all transactions are cash transactions.) 1) Acquired $1800 cash from the issue of common stock. 2) Borrowed $1270 from a bank. 3) Earned $1450 of revenues. 4) Paid expenses of $420. 5) Paid a $220 dividend. During Year 2, Packard engaged in the following transactions: (Assume all transactions are cash transactions.) 1) Issued an additional $1175 of common stock. 2) Repaid $815 of its debt to the bank. 3) Earned revenues of $1600. 4) Incurred expenses of $700. 5) Paid dividends of $270. What is the net cash inflow from operating activities that will be reported on Packard's statement of cash flows for Year 1?
A. $905.
B. $1030.
C. $1890.
D. $1175.
Answer: B
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