A partial amortization schedule for a 5-year note payable that Mabry Company issued on January 1, Year 1, is shown as follows. Accounting Period Year 1 Year 2 Year 3 Principal Balance January 1 $135,000 113,323 89,262 Cash Payment $36,527 36,527 36,527 Applied to Interest $14,850 12,466 9,819 Applied to Principal $21,677 24,061 26,708 Required a. What rate of interest is Mabry Company paying on the note? b. Using a financial statements model like the one shown, record the appropriate amounts for the following two events: (1) January 1, Year 1, issue of the note payable. (2) December 31, Year 1, payment on the note payable. c. If the company earned $91,600 cash revenue and paid $54,960 in cash expenses in addition to the interest in Year 1, what is the amount of each of the following? (1) Net income for Year 1. (2) Cash flow from operating activities for Year 1. (3) Cash flow from financing activities for Year 1. d. What is the amount of interest expense on this loan for Year 4? Required A Required B Required C Required D What rate of interest is Mabry Company paying on the note? Rate of interest % Required A Required B Required C Required D Using a financial statements model like the one shown, record the appropriate amounts for the following two events: (Enter any decreases to account balances and cash outflows with a minus sign. In the Cash Flows column, designate the cash flows as operating activities (OA), investing activities (IA), financing activities (FA), or if there is no effect, leave the cell blank. Not all cells will require entry.) (1) January 1, Year 1, issue of the note payable. (2) December 31, Year 1, payment on the note payable. Show less MABRY COMPANY Horizontal Statements Model Income Statement Event No. Balance Sheet Stockholder's Liabilities + Equity Statement of Cash Flow Assets Revenue Expense = Net Income 1. + 2. Required A Required B Required C Required D If the company earned $91,600 cash revenue and paid $54,960 in cash expenses in addition to the interest in Year 1, what is the amount of each of the following? (Cash outflows should be indicated with a minus sign.) (1) Net income for Year 1 (2) Cash flow from operating activities for Year 1 (3) Cash flow from financing activities for Year 1 Required A Required B Required C Required D What is the amount of interest expense on this loan for Year 4? (Round your answers to the nearest whole dollar amount.) Interest expense