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	Principal Balance January 1			Cash Payment			Applied to Interest			Applied to Principal
Year 1	$	133,000		$	33,311		$	10,640		$	22,671
Year 2		110,329			33,311			8,826			24,485
Year 3		85,844			33,311			6,868			26,443

Required

What rate of interest is Mabry Company paying on the note?

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.

If the company earned $96,000 cash revenue and paid $57,600 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.

What is the amount of interest expense on this loan for Year 4?

MABRY COMPANY Horizontal Statements Model