Madison Company issued an interest-bearing note payable with a face amount of $6,000 and a stated interest rate of 8% to the Metropolitan Bank on August 1, 2016. The note carried a one-year term.

6.

Required information

The amount of cash flow from operating activities on the 2016 statement of cash flows would be:

$480.

$200.

$6,000.

zero.

7.

Required information

Based on this information alone, the amount of total liabilities appearing on Madison's 2016 balance sheet would be:

$6,280

$6,200

$6,480

$6,000