Use the following to answer questions 6-10 November 1 FLY Tech, an Airline maintenance company, borrows $1,000,000 cash from Bank of America to expand operations. FLY signs a 1 year, 3% promissory note. FLY's year-end is December 31. 6 How was the loan classified on the company's December 31, vear 1 balance sheet? A Current liability B. Long term liability C Note disclosure only D. Stockholders' Equity 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 /12 10000oo0,03 X 2 8. SS000 How much interest should be accrued on December 31 of the first year (assume no previous entry was recorded for interest on the loan)? 1 000 000 0.03 * 10/12 2. $11025020 When the note is paid at maturity (October 31, year 2) how much cash is paid to Bank of America? $25 000. When the note is paid at maturity in the second accounting year, how much does net income decrease