Will the interest expense increase or decrease over the years? Why? $(2$ point$)$

How much does the company pay to retire the bond on January $1,2017?$ What

is the book value of the bond liability on January $1,2017?$ Record journal

entry on January $1,2017$ for early retirement of bonds. $(8$ points$)$

Question IV$.(36$ points$)$

The following information has been provided to you by Alethea Inc.

From Balance sheet:

Liabilities and Equity

Net Income

$$102,000$

Other available information:

During the year, Alethea Inc. sold equipment costing $$30,000$ with $$16,000$ in

Accumulated Depreciation.

The company partially financed the purchase of new PPE through issuing a note

payable in the amount of $$13,000.$ Other than that, the company didn't borrow new

debt in this year.

$1.$ What is the cash flow from operating activities in year $2011?(9$ pts$)$

$2.$Alethea Inc. reports that in year $2020,25\%$ of the sales$/$revenue is cash

sales. What is the cash collection from customers in year $2011?(4$ pts$)$

$3.$ What is the cash payment to suppliers in year $2011?(4$ pts$)$

$4.$What is the cash proceeds from the sale of PPE in $2011?(3$ pts$)$

$5.$ What is the cash spent to purchase new equipment in $2011?(4$ points$)$

$6.$ Find the value of A $($i$.$e$.,$ Equipment$-$at cost on Dec $31,2011)?(3$ points$)$

$7.$ Find the value of B $($i$.$e$.,$ Accumulated Depreciation on Dec $31,2011)?(2$ pts$)$

$8.$What is the cash flow from financing activities in year $2011?(7$ pts$)$