1. Pepsi Co. holds Coke Inc.s $15,000, 90-day, 3% note. When Pepsi Co. receives the check from Coke Inc. for the full amount of the due, Pepsi will record:

1. Credit Interest Revenue by $450
2. Debit Interest Expense by $112.50
3. Credit Notes Receivable for $15,450
4. Debit Cash for $15,112.50

1. Which of the following represents cash flows from operating activities?
   1. Repayment of the principal on a loan
   2. Payments to purchase equity securities of another company
   3. Cash receipts from sales
   4. Proceeds received from borrowing money.