Collins Company began 2013 with a note payable of $10,000 and interest payable of $400. During the year, the company accrued an additional $200 of interest expense, and paid off the note with interest. On the company's 2013 income statement, cash flows for financing activities related to the note would be:

Question

Quizplus · Accepted Answer

Only the $10,000 principle would be considered an outflow for financing activities. The $600 interest paid is considered an operating activity.

Collins Company Began 2013 with a Note Payable of $10,000