Required

a$.$ What rate of interest is Mabry Company paying on the note?

b$.$ Using a financial statements model, record the appropriate amounts for the following two events:

$(1)$ January $1,$ Year $1,$ issue of the note payable.

$(2)$ December $31,$ Year $1,$ payment on the note payable.

c$.$ If the company earned $$62,000$ cash revenue and paid $$45,000$ in cash expenses in addition to the interest in Year $1,$ what is the

amount of each of the following?

$(1)$ Net income for Year $1.$

$(2)$ Cash flow from operating activities for Year $1.$

$(3)$ Cash flow from financing activities for Year $1.$

d$.$ What is the amount of interest expense on this loan for Year $4?$

Complete this question by entering your answers in the tabs below.

Using a financial statements model, record the appropriate amounts for the following two events:

Note: Enter any decreases to account balances and cash outflows with a minus sign. Leave cells blank if no input is needed. In the Statement of Cash Flows

column, classify the cash flows as operating activities $($OA$),$ investing activities $($IA$),$ or financing activities $($FA$).$ Leave cells blank if no input is needed.

$(1)$ January $1,$ Year $1,$ issue of the note payable.

$(2)$ December $31,$ Year $1,$ payment on the note payable.

MABRY COMPANY

Horizontal Statements Model