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Malco Enterprises issued $14,000 of common stock when the company was started. In addition, Malco borrowed $44,000 from a loca bank on July 1, Year
Malco Enterprises issued $14,000 of common stock when the company was started. In addition, Malco borrowed $44,000 from a loca bank on July 1, Year 1. The note had a 6 percent annual interest rate and a one-year term to maturity. Malco Enterprises recognized $76,500 of revenue on account in Year 1 and $90,000 of revenue on account in Year 2. Cash collections of accounts receivable were $62,900 in Year 1 and $73,100 in Year 2. Malco paid $43,000 of other operating expenses in Year 1 and $49,000 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? i. What amount of assets would be reported on the December 31, Year 2, balance sheet? Complete this question by entering your answers in the tabs below. 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? i. What amount of assets would be reported on the December 31, Year 2, balance sheet? Note: For all requirements, enter cash outflows as negative amounts
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