Zirkle Company borrowed $$129,000$ from Plains Bank on July $31,$ Year $1.$ The note carried a $6\%$ interest rate with a one$-$year term to maturity.

Required:

$0.$ Show the effects of borrowing the money and the December $31,$ Year $1$ adjustment on the accounting equation.

b$.$ What is the amount of interest expense for Year $1?$

c$.$ Prepare a statement of cash flows for the Zirkle Company for Year $1.$

Complete this question by entering your answers in the tabs below.

Prepare a statement of cash flows for the Zirkle Company for Year $1.$

Note: Cash outflows should be indicated with a minus sign.

ZIRKLE COMPANY

Statement of Cash Flows

For the Year Ended December $31,$ Year $1$

$\backslash$table$[[$Cash flows from operating activities,,$],[,,],[$Net cash flow from operating activities,,$],[$Cash flows from investing activities,,$],[,,],[$Net cash flow from investing activities,,$],[$Cash flows from financing activities,,$],[,,],[$Net cash flow from financing activities,,$],[,,],[,,]]$