Chester Company Began 2016 with a Note Payable of $20,000

question 107

Multiple Choice

Chester Company began 2016 with a note payable of $20,000 and interest payable of $800.During the year,the company accrued an additional $400 of interest expense,and paid off the note with interest.On the company's 2016 income statement,cash flows for financing activities related to the note would be:

• A)$1,200 outflow
• B)$20,000 outflow
• C)$20,400 outflow
• D)$21,200 outflow