ABC Company began Year 2 with $100,000 in Cash and Common Stock. On March 1 of Year 2, ABC Company loaned $50,000 to Deb Tor Inc. for one year at 12% interest. Deb Tor Inc. repaid the principal and interest on Feb 28, Year 3.

ABC's journal entry in Year 3 to record the receipt of the interest payment would debit Cash $6,000 and: ?

How would the Year 3 Statement of Cash Flows be affected by these note transactions?

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