Item2

10points

Item 2

TB MC Qu. 7-52 (Algo) Madison Company issued an interest-bearing...

Madison Company issued an interest-bearing note payable with a face amount of $25,200 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:

Multiple Choice

$2,016.

$840.

$25,200.

zero.