Homework Answers
Date of note issue = November 1, 2018
Time period of note = 5 months
For the year 2018, interest revenue is to be calculated for two months and for the year, it is to be calculated for 3 years.
Interest revenue for 2019 = Note x Interest rate x time period
= 60,000 x 6% x 3/12
= $900
Interest revenue for 2018 = Note x Interest rate x time period
= 60,000 x 6% x 2/12
= $600
Cash flow from operating activities in 2019 = Cash receipts of interest
= 600+900
= $1,500
Kindly comment if you need further assistance.
Thanks‼!
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