Question

Madison Company issued an interest-bearing note payable with a face amount of $30,000 and a stated interest rate of 8% to the Metropolitan Bank on August 1, Year 1. The note carried a one-year term. The amount of cash flow from operating activities on the Year 1 statement of cash flows would be:

Answer 1

Answer:

zero

Explanation:

It will be Zero. Because its not an operating activity. It will come under Finance activity in the cash flow of Madison company .