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On January 1, 2018, Brown Co. borrowed cash from First Bank by issuing a $62,500 face value, four-year term note that had an 9 percent

On January 1, 2018, Brown Co. borrowed cash from First Bank by issuing a $62,500 face value, four-year term note that had an 9 percent annual interest rate. The note is to be repaid by making annual cash payments of $19,292 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 $30,625 cash per year.

  1. Prepare an income statement, a balance sheet, and a statement of cash flows for each of the four years.
BROWN CO.
Income Statement
For the Year Ended December 31
2018 2019 2020 2021
not attempted not attempted not attempted not attempted not attempted
not attempted not attempted not attempted not attempted not attempted
not attempted not attempted not attempted not attempted
BROWN CO.
Balance Sheet
As of December 31
2018 2019 2020 2021
Assets
not attempted not attempted not attempted not attempted not attempted
not attempted not attempted not attempted not attempted not attempted
not attempted not attempted not attempted not attempted not attempted
Total assets $0 $0 0 0
Liabilities
not attempted not attempted not attempted not attempted not attempted
not attempted not attempted not attempted not attempted not attempted
Total liabilities 0 0 0 0
Stockholders' Equity
not attempted not attempted not attempted not attempted not attempted
not attempted not attempted not attempted not attempted not attempted
Total stockholders' equity 0 0 0 0
Total liabilities and stockholders' equity $0 $0 $0 $0
BROWN CO.
Statement of Cash Flows
For the Year Ended December 31
2018 2019 2020 2021
Cash flows from operating activities
not attempted not attempted not attempted not attempted not attempted
not attempted not attempted not attempted not attempted not attempted
not attempted not attempted not attempted not attempted not attempted
Net cash flow from operating activities 0 0 0 0
Cash flows from investing activities
not attempted not attempted not attempted not attempted not attempted
not attempted not attempted not attempted not attempted not attempted
Net cash flows from investing activities 0 0 0 0
Cash flows from financing activities
not attempted not attempted not attempted not attempted not attempted
not attempted not attempted not attempted not attempted not attempted
not attempted not attempted not attempted not attempted not attempted
Net cash flows from financing activities 0 0 0 0
Net change in cash 0 0 0 0
not attempted not attempted not attempted not attempted not attempted
Ending cash balance $0 $0 0 0

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