Waddell Company had the following balances on its accounting records as of December 31, Year 1:

Assets			Liabilities & Equity
Cash	$35,000		A/P	$7,500
A/R	9,000		Common Stock	40,000
Land	51,000		Retained Earnings	47,500
Total	$95,000			$95,000

The following accounting events apply to Waddell Companys Year 2 fiscal year:

Jan 1	Acquired $20,000 cash from the issue of common stock.
Feb 1	Paid $6,000 cash in advance for a one year lease for office space.
Mar 1	Paid a $2,000 cash dividend to the stockholders.
May 1	Made a cash payment on accounts payable of $5,500.
Jul 1	Received $9,600 cash in advance as a retainer for services to be performed monthly over the coming twelve months.
Sep 1	Borrowed $30,000 from the bank at an annual interest rate of 3%. The note will be repaid in three years. Interest is paid annually on August 31.
Oct 1	Purchased $2,500 of supplies on account.
Dec 31a	Earned $58,000 of service revenue on account during the year.
Dec 31b	Received cash collections from customers amounting to $46,000.
Dec 31c	Incurred other operating expenses on account during the year that amounted to $28,000.
Dec 31d	Recognized accrued salaries expense of $6,500.
Dec 31e	Had $500 of supplies on hand at the end of the period.
Dec 31f	Recognized interest expense incurred during Year 2.

1. How much interest expense did Waddell recognize in Year 2?

2. What is the value of Total Assets at the end of Year 2?

3. What Net Income amount will Waddell report on its Year 2 Income Statement?

4. What is the ending balance of the Retained Earnings account after closing Year 2?

5. How many liability accounts appear on the Year 2 Balance Sheet?

6. What is the net cash flow from operating activities for Year 2?