Question: On January 1, 2018, Brown Co. borrowed cash from First Bank by issuing a $100,000 face value, four-year term note that had an 8 percent

On January 1, 2018, Brown Co. borrowed cash from First Bank by issuing a $100,000 face value, four-year term note that had an 8 percent annual interest rate. The note is to be repaid by making annual cash payments of $30,192 that include both interest and principal on December 31 of each year. Brown used the proceeds from the loan to purchase land that generated rental revenues of $52,000 cash per year.

Required

a. Prepare an amortization schedule for the four-year period. Round answers to nearest whole dollar.

b. Organize the information in accounts under an accounting equation.

c. Prepare an income statement, a balance sheet, and a statement of cash flows for each of the four years.

d. Does cash outflow from operating activities remain constant or change each year? Explain.

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a Brown Co Amortization Schedule 100000 4Yr Term Note 8 Interest Rate Year Prin Bal on Jan 1 Cash Pay Dec 31 Applied to Interest Applied to Principal Prin Bal End of Period 2018 100000 30192 8000 2219... View full answer

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