On May 1, Year 1, Arrow Company borrowed $10,000 from the State Bank at 9 percent annual interest. The note issued by Arrow had a one-year term. In addition, Arrow reported cash revenue of $3,400 in Year 1 and $800 in Year 2 from sales. Interest is paid when the note is due.
- Arrow's net income for Year 1 and Year 2 would be
A) $2,500 / $100
B) $2,800 / $500
C) $2,400 / $800
D) $2,500 / $800

Question

Quizplus · Accepted Answer

The Answer of On May 1, Year 1, Arrow Company borrowed $10,000 from the State Bank at 9 percent annual interest. The note issued by Arrow had a one-year term. In addition, Arrow reported cash revenue of $3,400 in Year 1 and $800 in Year 2 from sales. Interest is paid when the note is due.
- Arrow's net income for Year 1 and Year 2 would be
A) $2,500 / $100
B) $2,800 / $500
C) $2,400 / $800
D) $2,500 / $800

On May 1, Year 1, Arrow Company Borrowed $10,000 from the State