Problem $9-19$A $($Algo$)$ Effect of accrued interest on financial statements LO $9-1$

Malco Enterprises issued $$17,000$ of common stock when the company wasted. In addition, Malco borrowed $$43,000$ from a local 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 $$80,200$ of revenue on account in Year $1$ and $$92,200$ of revenue on account in Year $2$ Cash collections of accounts receivable were $$68,300$ in Year $1$ and $$78,500$ in Year $2$ Malco paid $$45,300$ of other operating expenses in Year $1$ and $$52,000$ of other operating expenses in Year $2$ Malco repaid the loan and interest at the maturity date.

a$.$ What amount of interest expense would Malco report on the Year $1$ income statement?

b$.$ What amount of net cash flow from operating activities would Malco report on the Year $1$ statement of cash flows?

$5$ points

c$.$ What amount of total liabilities would Malco report on the December $31,$ Year $1,$ balance sheet?

d$.$ What amount of retained earnings would Malco report on the December $31,$ Year $1,$ balance sheet?

e$.$ What amount of net cash flow from financing activities would Malco report on the Year $1$ statement of cash flows?

f$.$ What amount of interest expense would Malco report on the Year $2$ income statement?

g$.$ What amount of net cash flow from operating activities would Malco report on the Year $2$ statement of cash flows?

h$.$ What amount of total assets would Malco report on the December $31,$ Year $2,$ balance sheet?

i$.$ What amount of net cash flow from investing activities would Malco report on the Year $2$ statement of cash flows?

j$.$ If Malco Enterprises paid a $$2,700$ dividend during Year $2,$ what retained earnings balance would it report on the December $31,$ Year $2,$ balance sheet?

$\backslash$table$[[$a$.$ Interest expense,$],[$b$.$ Net cash flow from operating activities,$],[$c$.$ Total liabilities,$],[$d$.$ Retained earnings,$],[$e$.$ Net cash flow from financing activities,$],[$f$.$ Interest expense,$],[$g$.$ Net cash flow from operating activities,$],[$h$.$ Total assets,$],[$i$.$ Net cash flow from investing activities,$],[$j$.$ Retained earnings balance,$]]$