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Arrow Company: Calculate interest, net income, cash flow

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Use the following information to answer the next two questions.

On May 1, 2011, Arrow Company borrowed $10,000 from the State Bank at 9 percent annual interest. The note issued by Arrow had a one-year term. Arrow reported cash revenue of $3,400 and $800 in 2011 and 2012, respectively.

1. What is Arrow's net income for 2011 and 2012?

2. What is the cash from flow from operating activities Arrow would report on the 2011 and 2012 statements of cash flows?

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Solution Summary

Use the following information to answer the next two questions.

On May 1, 2011, Arrow Company borrowed $10,000 from the State Bank at 9 percent annual interest. The note issued by Arrow had a one-year term. Arrow reported cash revenue of $3,400 and $800 in 2011 and 2012, respectively.

1. What is Arrow's net income for 2011 and 2012?

2. What is the cash from flow from operating activities Arrow would report on the 2011 and 2012 statements of cash flows?

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