of interest expense shown on the budgeted income state first year? latter amount different than the cash outflows for the fent periodic and lump-sum payment 6 **Kerby Company will issue a $400,000, five-year, 7 percent perinterest is paid semiannually. note when the market interest rate is 8 percent. The face rate of interest note. Describe the cash Determine the amount of cash the company will receive from the expense shown on the outflows Kerby will pay on the note over its life. What is the in budgeted income statement for the first year