Use the following to answer questions 6 - 10 On August 1st, FLY Tech, an Airline maintenance company, borrows $2,500,000 cash from Bank of America to expand operations. FLY signs a five-year, 3% promissory note and will be making annual payments of $500,000 plus accrued interest. FLY's year-end is December 31. 6. How was the loan classified on the company's December 31, year 1 balance sheet? A. Current liability B. Long term liability C. Note disclosure only D. Stockholders' Equity E. Part current liability and part long term liability 7. How was the loan classified on the company's December 31, year 1 statement of cash flow? A. Operating activity B. Investing activity C. Financing activity D. Not shown on the statement of cash flows 8. $. How much interest should be accrued on December 31 of the first year (assume no previous entry was recorded for interest on the loan)? When the installment payment is made on July 31, year 2, how much cash is paid to Bank of 9. $. America? 10. $. When the installment payment is made on July 31, year 2, how much does net income decrease