Business, 24.04.2020 22:45 jortizven0001

Malco Enterprises issued $15,000 of common stock when the company was started. In addition, Malco borrowed $41,000 from a local bank on July 1, Year 1. The note had a 6 percent annual interest rate and a one-year term to maturity. Malco Enterprises recognized $78,000 of revenue on account in Year 1 and $90,200 of revenue on account in Year 2. Cash collections of accounts receivable were $66,300 in Year 1 and $76,500 in Year 2. Malco paid $43,500 of other operating expenses in Year 1 and $50,000 of other operating expenses in Year 2. Malco repaid the loan and interest at the maturity date.
Required:
(a) What amount of interest expense would Malco report on the Year 1 income statement?
(b) What amount of net cash flow from operating activities would Malco report on the Year 1 statement of cash flows?
(c) What amount of total liabilities would Malco report on the December 31, Year 1, balance sheet?
(d) What amount of retained earnings would Malco report on the December 31, Year 1, balance sheet?
(e) What amount of net cash flow from financing activities would Malco report on the Year 1 statement of cash flows?

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Malco Enterprises issued $15,000 of common stock when the company was started. In addition, Malco bo...

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