IN est 3, Chapters 6 and 7 Question 18 jof 25) 18. On March 1, 2016. Steger Corp

Question

IN est 3, Chapters 6 and 7 Question 18 jof 25) 18. On March 1, 2016. Steger Corporation rvested In a S60000 note recevable with a 1-year term and a 9% ennuel interest rate. Which of the following statements cormectly reflects the efflect of the note on the company's 2017 financial starements? O inerest revenue of $900. $65,400 cash inflow from investing activities O Infterest revenue of $900: $60,000 cash intow trom investing activities: $5,400 cash inflow from operating activities O Iinterest revenue ot $5,400: $65.400 cash inflow from investing activities O Interest revenue of $900 $60.000 cash infow friom investing activities: $5,400 cash infiow from financing activities inspiron 1525 FT F3 F4 F5 F7 F8 F9

Explanation / Answer

The statement which will correctly reflect the effect of the note on the company's 2017 financial statement is :

Interest Revenue of $900 (60,000*9%*2/12)

$60,000 cash inflow from investing activities

$5,400 cash inflow from operating activities

Correct answer is b.

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