Boyd Company has a line of credit with State Bank. Boyd can borrow up to $540,000 at any time over the course of the Year 1 calendar year. The following table shows the prime rate expressed as an annual percentage along with the amounts borrowed and repaid during Year 1. Boyd agreed to pay interest at an annual rate equal to 1 percent above the bank's prime rate. Funds are borrowed or repaid on the first day of each month. Interest is payable in cash on the last day of the month. The interest rate is applied to the outstanding monthly balance. For example, Boyd pays 6 percent (5 percent + 1 percent) annual interest on $74,000 for the month of January Month Amount Borrowed or (Repaid) Prime Rate for the Month January $ 74,000 February March April through October No change No change No change November (30.000 December (24,000) (24,000) 54.00 (44,000) Boyd earned $39,000 of cash revenue during Year 1. Required Prepare an income statement, balance sheet, and statement of cash flows for Year 1. (Do not round intermediate calculations. Statement of Cash Flows only: Items to be deducted must be indicated with a minus sign.) Prepare an income statement, balance sheet, and state Statement of Cash Flows only: Items to be deducted BOYD COMPANY Income Statement For the Year Ended December 31, Year 1 Service revenue $ 39,000 Book GE Print ferences Expenses Interest expense 6,205 Net income S 32.795 BOYD COMPANY Balance Sheet As of December 31, Year 1 Assets Cash Total Assets Liabilities Stockholders' Equity Common stock Retained earnings Bonds payable Total Stockholders' Equity Total Liabilities and Stockholders' Equity BOYD COMPANY Statements of Cash Flows For the Year Ended December 31, Year 1 Cash flows from operating activities: Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities: Net cash flow from financing activities Net change in cash Ending cash balance