Create a unique three-year, par value loan by choosing reasonable values for the following items. Answer the questions below related to the loans impact on the financial statements for the borrower. The loan should be issued during 2020, sometime after January 1, and interest should be payable annually. Use formulas for all cells containing dollar amounts, except for the input cells below.
Inputs:
Face Value
Interest Rate
Date of Issuance (e.g. 4/1/2020)
What is the loan's impact on earnings?		Year Ended December 31, 2020	Year Ended December 31, 2021
Account Name:
Overall Dollar Value of Impact to Earnings (Ignore taxes):
What is the loan's impact on cash flow?		Year Ended December 31, 2020	Year Ended December 31, 2021
Operating Impact (Dollar Amount):
Investing Impact (Dollar Amount):
Financing Impact (Dollar Amount):
Overall Impact to Cash Flow (Dollar Amount):
What is the loan's impact on the Balance Sheet? Remember the impact to Balance Sheet elements is cumulative, because the accounts are permanent.		Year Ended December 31, 2020	Year Ended December 31, 2021
Asset Impact (Dollar Amount):
Liability Impact (Dollar Amount):
Equity Impact (Dollar Amount):

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