28. Floral Deliveries Inc. (FDI) purchased store equipment at a cash price of $70,000. FDI put a certain amount down and financed the balance with a note requiring five equal year-end payments to retire the debt. A partial amortization table is as follows:

Period	Payment	Interest	Principal	Carrying Value
0				$60,000
1	$15,426	$5,400	$10,026	49,974
2	15,426	4,498	10,928	39,046
3	15,426	3,514	11,912	27,134

A. What is the interest rate on the note? Show your calculations.

B. What amount or amounts will be reported on the Year 1 statement of cash flows for the business? (Assume that Time 0 occurs at the beginning of Year 1, i.e., 1/1/x1)

In the investing activities section: