A partial amortization schedule for a 5-year note payable that Mabry Company issued on January 1, Year 1, is shown as follows. Accounting Period Year 1 Year 2 Year 3 Principal Balance January 1 $ 103,000 85,443 66,481 Cash Payment $25,797 25,797 25,797 Applied to Interest $ 8,240 6,835 5,318 Applied to Principal $17,557 18,962 20,479 Required a. What rate of interest is Mabry Company paying on the note? b. Using a financial statements model like the one shown, record the appropriate amounts for the following two events: (1) January 1, Year 1, issue of the note payable. (2) December 31, Year 1, payment on the note payable. c. If the company earned $91,100 cash revenue and paid $54,660 in cash expenses in addition to the interest in Year 1, what is the amount of each of the following? (1) Net income for Year 1. (2) Cash flow from operating activities for Year 1. (3) Cash flow from financing activities for Year 1. d. What is the amount of interest expense on this loan for Year 4? MABRY COMPANY Horizontal Statements Model Balance Sheet Income Statement Event No. Assets Statement of Cash Flow Liabilities Stockholder's Equity + Revenue Net Income Expense 1. 0 x + 0 0 0 II 103,000 (25,121) X 0 103,000 FA (7,210) X (25,121) X FA 2. 0 X (7,210) X 7,210 X Net income for Year 1 (1) (2) (3) Cash flow from operating activities for Year 1 Cash flow from financing activities for Year 1 $ 28,200 $ 36,440 X $ 9,317 X Interest expense $3,179 X Rate of interest 7 X %