On March 1, Year 1, Taylor’s Deli loaned $18,000 to Style Studio for one year at 5 percent interest.

Required
Answer the following questions:
a. What is Taylor’s interest income for Year 1?
b. What is Taylor’s total amount of receivables at December 31, Year 1?
c. How will the loan and interest be reported on Taylor’s Year 1 statement of cash flows?
d. What is Taylor’s interest income for Year 2?
e. What is the total amount of cash that Taylor’s will collect in Year 2 from Style Studio?
f. How will the loan and interest be reported on Taylor’s Year 2 statement of cash flows?
g. What is the total amount of interest Taylor’s Deli earned from the loan to Style Studio?