Using the information circled in the below image, solve for Interest on Mortgages/Loans in the Pro Forma Statement

NOTE: 202X is 2022 and 202Y is 2023

Pro Forma Income Statement
Make It So Kitchens & Cabinets
for Fiscal 2023
REVENUE
Sales of Cabinets	7,200,000
Sales of Refurbishing	1,680,000
TOTAL REVENUE	8,880,000
-	-
COGS
Wages & Benefits	2,650,000
Materials	3,220,000
Equipment and Depreciation	36,000
Freight and Shipping	214,000
TOTAL COGS	6,120,000
-	-
GROSS PROFIT	2,760,000
-	-
SELLING, GENERAL, & ADMIN EXPENSES
Personnel Costs	650,000
Commissions	IGNORE
Credit Card Fees	90,000
Insurance	13,800
Interest on Mortgages/Loans	? - Solve for this
Marketing Expenses	120,000
Office Expenses	76,600
Property Taxes	86,000
Repairs and Maintenance	50,000
Rent - Downtown Office
Consultant - Computer Systems	30,000
TOTAL SELLING, GENERAL, & ADMIN EXPENSES	1,116,400

Use the below Balance Sheet IF NEEDED:

Balance Sheet
Make it so Kitchens & Cabinets
For year ending December 31, 2022
ASSETS
Current Assets
Cash	-	1,042,900
Acounts Receivable	-	780,000
Finished Inventory	-	2,240,000
Prepaid Insurance	-	3,600
Shop Supplies	-	990,000
Short Term Investments (6 - 12 mos.)	-	750,000
Total Current Assets		5,806,500
-	-	-
Long-Term Assets
Long Term Investments (> 1 yr.)		1,400,000
Land & Buildings		6,750,000
Shop Machinery	552,500
Less: Accumulated Depreciation	144,000	Total: 408,500
Total Long-Term Assets		8,558,500
TOTAL ASSETS		14,365,000
-	-	-
LIABILITIES
Current Liabilities
Accounts Payable	690,000
Commercial Paper	810,000
Total Current Liabilities	1,500,000
-	-	-
Long-Term Liabilities
Loans Payable	540,000
Mortgage Payable	3,100,000
Total Long-Term Liabilities	3,640,000
TOTAL LIABILITIES	5,140,000
-	-	-
STOCKHOLDER'S EQUITY
Common Stock		7,500,000
Preferred Stock		1,750,000
Retained Earnings (Fiscal 2022)		975,000
TOTAL STOCKHOLDER'S EQUITY		10,225,000
TOTAL LIABILITIES AND EQUITY		15,365,000

Stock Sale The company intends to sell its final 50,000 shares of common stock at $20/ share to raise capital for its purchase of the lumberyard (see Item \#10). They expect the issue to sell out within 60 days of being offered on May 2nd.75% of the purchases are expected to be made in the first month and the remaining purchases are expected to be made in June. The company chosen May as the launch date because the spring and summer are the times that are traditionally the highest revenue generating months. The issuance of stock does not result in the company being taxed on the funds it receives. Expenditures for the Coming Year The company is anticipating the following expenses: (a) rent for the downtown offices will increase by 5% on July 01,202 Y. Currently, the company pays $4,400 per month. (b) an increase of insurance premiums of 15% due to a claim in November, 202X brings the annual insurance fee to a total of $13,800. Insurance premiums are paid in full at the end of March each year. (c) renovations connected to the insurance claim amounting to $50,000 over the first 4 months of 202Y. (d) Property taxes owing to the City amount to 86,000 per year and they are paid at the end of June. (e) The commercial paper that the company issued December 15th,202X will be paid out at the end of year - including annual interest of 7%. (f) The company took out a $540,000 loan at the end of December 202X. The interest rate is 6% and it is expected the principal will be paid back over 5 years in equal monthly payments. Note: In the cash flow statement, show principal and interest payments on separate lines. (g) the mortgage is amortized over 25 years at 4% per annum. The payment is $15,000 per month. Assume that this amount consists of $7,500 in principal and $7,500 in interest. (h) the company intends to take advantage of an opportunity to make a balloon payment of $125,000 against its mortgage on April 15th,202Y. Tip: When calculating principal and interest and assigning them to the cash flow statement, be sure to assign them as an operating, investing, or financing item. Accounts Receivable Based on experience, Make It So Kitchens and Cabinets estimates that the collection of its Accounts Receivable in 202Y from sales made in 202X will follow the pattern outlined in the table below. Stock Sale The company intends to sell its final 50,000 shares of common stock at $20/ share to raise capital for its purchase of the lumberyard (see Item \#10). They expect the issue to sell out within 60 days of being offered on May 2nd.75% of the purchases are expected to be made in the first month and the remaining purchases are expected to be made in June. The company chosen May as the launch date because the spring and summer are the times that are traditionally the highest revenue generating months. The issuance of stock does not result in the company being taxed on the funds it receives. Expenditures for the Coming Year The company is anticipating the following expenses: (a) rent for the downtown offices will increase by 5% on July 01,202 Y. Currently, the company pays $4,400 per month. (b) an increase of insurance premiums of 15% due to a claim in November, 202X brings the annual insurance fee to a total of $13,800. Insurance premiums are paid in full at the end of March each year. (c) renovations connected to the insurance claim amounting to $50,000 over the first 4 months of 202Y. (d) Property taxes owing to the City amount to 86,000 per year and they are paid at the end of June. (e) The commercial paper that the company issued December 15th,202X will be paid out at the end of year - including annual interest of 7%. (f) The company took out a $540,000 loan at the end of December 202X. The interest rate is 6% and it is expected the principal will be paid back over 5 years in equal monthly payments. Note: In the cash flow statement, show principal and interest payments on separate lines. (g) the mortgage is amortized over 25 years at 4% per annum. The payment is $15,000 per month. Assume that this amount consists of $7,500 in principal and $7,500 in interest. (h) the company intends to take advantage of an opportunity to make a balloon payment of $125,000 against its mortgage on April 15th,202Y. Tip: When calculating principal and interest and assigning them to the cash flow statement, be sure to assign them as an operating, investing, or financing item. Accounts Receivable Based on experience, Make It So Kitchens and Cabinets estimates that the collection of its Accounts Receivable in 202Y from sales made in 202X will follow the pattern outlined in the table below