The Jarvis Company issued a $22,000 face value interest bearing note with a stat

Question

The Jarvis Company issued a $22,000 face value interest bearing note with a stated interest rate of 9.2%, and a one-year term. The note was issued to the National Bank on August 1, 2011.

The amount of cash inflow from financing activities on the 12/31/2011 statement of cash flows would be:

$22,000.

$24,024.

$22,888.

$0.

The Jarvis Company issued a $22,000 face value interest bearing note with a stated interest rate of 9.2%, and a one-year term. The note was issued to the National Bank on August 1, 2011.

Explanation / Answer

d) $ 0

Note mature on july 31, 2012, therefore cash inflow from financing activities as on 12/31/11 would be zero and as on 07/31/2012 = 24024

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