\begin{tabular}{|l|r|r|r|} \hline Cash & 2022 & 2021 & Change \\ \hline Accounts receivable & $31,900 & $18,500 & +13,400 \\ \hline Inventories & 38,000 & 31,700 & +6,300 \\ \hline Prepaid expenses & 58,700 & 50,200 & +8,500 \\ \hline Land & 1,900 & 2,700 & 800 \\ \hline Equipment (net) & 63,100 & 95,100 & 32,000 \\ \hline Total assets & 74,700 & 73,600 & +1,100 \\ \hline \hline Accounts payable & 268,300 & 271,800 & 3,500 \\ \hline Accrued liabilities & $40,300 & $47,100 & 6,800 \\ \hline Long-term notes payable & 6,600 & 5,300 & +1,300 \\ \hline Bonds payable & 48,400 & 94,100 & 45,700 \\ \hline Premium on bonds payable & 8,000 & & +8,000 \\ \hline Common stock & 400 & & +400 \\ \hline Additional paid-in capital & 45,000 & 40,000 & +5,000 \\ \hline Retained earnings & 50,400 & 41,800 & +8,600 \\ \hline Total liabilities \& equity & 69,200 & 43,500 & +25,700 \\ \hline \end{tabular} Transaction data for the year ended December 31,2022 , follows: - Net income, $63,800 - Depreciation expense on equipment, $13,900 - Sold land for $25,600, including $6,400 loss - Acquired equipment by issuing long-term note payable, $15,000 - Paid long-term note payable, $60,700 - Received cash for issuance of common stock, \$13,600 - Paid cash dividends during the year (you will need to calculate the amount) - New 5-year, 7\% bonds were issued at 105 on December 31,2022 Required: 1. Prepare a statement of cash flows for 2022. 2. Was the market interest rate of the bond issue on December 31,2022 higher or lower than 7\%? Briefly explain. 3. Assume that interest on the new bonds is paid annually on December 31, prepare the journal entry (or entries) that the company will need make on December 31, 2023-one year after the bond issue. Assum straight-line amortization for any premium or discount