On January 1, 2018, Brown Co. borrowed cash from First Bank by issuing a $67,500 face value, four-year term note that had an 8 percent annual interest rate. The note is to be repaid by making annual cash payments of $20,380 that include both interest and principal on December 31 of each year. Brown used the proceeds from the loan to purchase land that generated rental revenues of $33,075 cash per year.

3. Prepare an income statement, a balance sheet, and a statement of cash flows for each of the four years.

BROWN CO.
Statement of Cash Flows
For the Year Ended December 31
	2018	2019	2020	2021
Cash flows from operating activities
Net cash flow from operating activities	0	0	0	0
Cash flows from investing activities
Net cash flows from investing activities	0	0	0	0
Cash flows from financing activities
Net cash flows from financing activities	0	0	0	0
Net change in cash	0	0	0	0
Ending cash balance	$0	$0	0	0