Dan Dayle started a business by issuing an $85,000 face-value note to First State Bank on January 1, Year 1. The note had an 7 percent annual rate of interest and a five-year term. Payments of $20,731 are to be made each December 31 for five years. Required a. What portion of the December 31, Year 1, payment is applied to interest expense and principal? Interest expense Principal b. What is the principal balance on January 1. Year 2? Principal balance c. What portion of the December 31, Year 2. payment is applied to interest expense and principal? (Round your answers to the nearest dollar amount.) Interest expense Principal Clayton Industries has the following account balances: Current assets Noncurrent assets $ 29,000 Current liabilities 72,000 Noncurrent liabilities Stockholders' equity $ 14,000 60,000 27,000 The company wishes to raise $47.000 in cash and is considering two financing options: Clayton can sell $47.000 of bonds payable, or it can issue additional common stock for $47.000. To help in the decision process, Clayton's management wants to determine the effects of each alternative on its current ratio and debt-to-assets ratio. Required 3-1. Compute the current ratio for Clayton's management. (Round your answers to 2 decimal places.) Currently If bonds are issued i stock is issued Current Ratio to 1 to 1 to 1 a-2. Compute the debt-to-ossets ratio for Clayton's management. (Round your answers to 1 decimal place.) Debt to Assets Ratio Currently if bonds are inued if stock in lowed