Required information

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Madison Company issued an interest-bearing note payable with a face value of $24,000 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 Madisons Year 1 statement of cash flows?

Multiple Choice

• $1,920

• $800

• $24,000

• $0

using same information....

Based on this information alone, what is the amount of total liabilities appearing on Madison's balance sheet as of December 31, Year 1?

Multiple Choice

• $25,120

• $24,800

• $25,920

• $24,000