Connect CSecure https//newconnect.mheducation.com/flow/connect.html Ch. 21 - Bri

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Connect CSecure https//newconnect.mheducation.com/flow/connect.html Ch. 21 - Brief Exercises (60 minutes) Help Save & Exlt Submlt Saved 3 Check my work Brief Exercise 21-7 Installment note [LO21-3, 21-6] 8.33 points On January 1, 2018, the Merit Group issued to its bank a $38 million, five-year installment note to be paid in five equal payments at the end of each year. Installment payments of $9417 million annually include interest at the rate of 76%. What would be the amount(s) related to the note that Merit would report in its statement of cash flows for the year ended December 31, 2018? (List each cash flow separately. List any cash outflows with a minus sign. Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50).) eBook References $ in millions) Mc Graw Hill 4.00 PM ^??41 4/29/2018

Explanation / Answer

Cash outflow from OperatingActivities :-

=$38,000,000 x 7.6%

=$2,888,000

Cash inflow from Financing Activities :-

Note payable issued = $38,000,000

Cash outflow from Financing Activities :-

Annual payment =$9,417,000

Cash outflow from OperatingActivities = - 2.88

Cash inflow from Financing Activities = 38.00

Cash outflow from Financing Activities = - 9.41

Above figures are rounded off as asked in question.

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