Madison Company issued an interest-bearing note payable with a face value of $11,400 and a stated...
Madison Company issued an interest-bearing note payable with a face value of $11,400 and a stated interest rate of 8% to Metropolitan Bank on August 1, Year 1. The note carried a one-year term.
Based on this information alone, what is the amount of cash flow from operating activities reported on Madison’s Year 1 statement of cash flows?
-
$0
-
$912
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$11,400
-
$380
Homework Answers
Option A is the answer
There are no operating activities involved here.
Note issuing falls under the financing activities.
So, zero is the answer
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