Norman Co. borrowed \(\$ 15,000\) from the local bank on April 1, 2011, when the company was started. The note had an 8 percent annual interest rate and a one-year term to maturity. Norman Co. recognized \(\$ 42,000\) of revenue on account in 2011 and \(\$ 56,000\) of revenue on account in 2012. Cash collections from accounts receivable were \(\$ 38,000\) in 2011 and \(\$ 58,000\) in 2012. Norman Co. paid \$26,000 of salaries expense in 2011 and \(\$ 32,000\) of salaries expense in 2012. Norman Co. paid the loan and interest at the maturity date.

Required
Based on the preceding information, answer the following questions. (Hint: Record the events in the accounting equation before answering the questions.)

a. What amount of net cash flow from operating activities would Norman report on the 2011 cash flow statement?

b. What amount of interest expense would Norman report on the 2011 income statement?

c. What amount of total liabilities would Norman report on the December 31, 2011, balance sheet?

d. What amount of retained earnings would Norman report on the December 31, 2011, balance sheet?

e. What amount of cash flow from financing activities would Norman report on the 2011 statement of cash flows?

f. What amount of interest expense would Norman report on the 2012 income statement?

g. What amount of cash flows from operating activities would Norman report on the 2012 cash flow statement?

h. What amount of total assets would Norman report on the December 31, 2012, balance sheet?