National Food Services, Inc., borrowed $4 million from its local bank on January 1, 2018, and issued a 4-yearinstallment note to be paid in four equal payments at the end of each year. The payments include interest at the rateof 10%. Installment payments are $1,261,881 annually.Required:What would be the amount(s) related to the note that National would report in its statement of cash flows for theyear ended December 31, 2018?
National Food Services, Inc., borrowed $4 million from its local bank on January 1, 2018, and issued a 4-yearinstallment note to be paid in four equal payments at the end of each year. The payments include interest at the rateof 10%. Installment payments are $1,261,881 annually.Required:What would be the amount(s) related to the note that National would report in its statement of cash flows for theyear ended December 31, 2018?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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National Food Services, Inc., borrowed $4 million from its local bank on January 1, 2018, and issued a 4-year
installment note to be paid in four equal payments at the end of each year. The payments include interest at the rate
of 10%. Installment payments are $1,261,881 annually.
Required:
What would be the amount(s) related to the note that National would report in its statement of
year ended December 31, 2018?
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