Malco Enterprises Issued $10,500 of common stock when the company was started. In addition, Malco borrowed $37,000 from a local bank on July 1, Year 1. The note had a 5 percent annual interest rate and a one-year term to maturity. Malco Enterprises recognized $73,000 of revenue on account in Year 1 and $85,800 of revenue on account in Year 2. Cash collections of accounts receivable were $61,500 in Year 1 and $71700 in Year 2. Malco paid $39,500 of other operating expenses in Year 1 and $45,500 of other operating expenses in Year 2. Malco repaid the loan and interest at the maturity date. Required a. Organize the information in accounts under an accounting equation b. What amount of net cash flow from operating activities would be reported on the Year 1 cash flow statement? c. What amount of interest expense would be reported on the Year 1 income statement? d. What amount of total liabilities would be reported on the December 31, Year 1. balance sheet? e. What amount of retained earnings would be reported on the December 31, Year 1, balance sheet? f. What amount of cash flow from financing activities would be reported on the Year 1 statement of cash flows? g. What amount of interest expense would be reported on the Year 2 income statement? h. What amount of cash flows from operating activities would be reported on the Year 2 cash flow statement? 1. What amount of assets would be reported on the December 31, Year 2. balance sheet? Suved Hel Organize the information in accounts under an accounting equation. (Enter any decreases to account balances with a minus sign. Not all cells will require ntry.) 1 MALCO ENTERPRISES Effect of Events on the Accounting Equation Year 1 and Year 2 Assets Liabilities Stockholders' Equity Accounts Notes Interest Common Retained Receivable Payable Payable Stock Earnings int Event Cash Year 1 1. 10,500 37,000+ 10,500+ 2 37.000 3 + 73.000 (61,500) 73.000 4. 61,500 (39,500) 5 - (39,500) (925) 32,575 69,500 11.500 925 925- 37,000 10,500 + 6 End. Bal Year 2 Bog.bal 1. 2 3. 4 5 End, bal 85,800 (71,700) 3.800 71,7001 - (45,500) (1.850) (37,000) (925) (45,500) (925) . + (12,650) 14.100 0 + (925) 0 39,375 1 Req A Req B to I b. What amount of net cash flow from operating activities would be reported on the Year 1 cash flow statement? c. What amount of interest expense would be reported on the Year 1 income statement? d. What amount of total liabilities would be reported on the December 31, Year 1, balance sheet? e. What amount of retained earnings would be reported on the December 31, Year 1, balance sheet? f. What amount of cash flow from financing activities would be reported on the Year 1 statement of cash flows? g. What amount of interest expense would be reported on the Year 2 income statement? h. What amount of cash flows from operating activities would be reported on the Year 2 cash flow statement? 1. What amount of assets would be reported on the December 31, Year 2, balance sheet? (For all requirements, enter cash outflows a negative amounts.) Show less $ 925 b. Net cash flow from operating activities c. Interest expense d. Total liabilities e. Retained earnings * Cash flow from financing activities 9. Interest expense n. Cash flows from operating activities Amount of assets