Malco Enterprises issued $$15,000$ of common stock when the company was started. In addition, Malco borrowed $$46,000$ from a local bank on July $1,$ Year $1.$ The note had a $5$ percent annual interest rate and a one$-$year term to maturity. Malco Enterprises recognized $$77,500$ of revenue on account in Year $1$ and $$91,200$ of revenue on account in Year $2.$ Cash collections of accounts receivable were $$63,300$ in Year $1$ and $$73,500$ in Year $2.$ Malco paid $$44,000$ of other operating expenses in Year $1$ and $$50,000$ of other operating expenses in Year $2.$ Malco repaid the loan and interest at the maturity date.

Required

Based on this information given above, $($Hint$.$ Record the events in the accounting equation and answer the following questions.$)$

a$.$ What amount of interest expense would Malco report on the Year $1$ income statement?

b$.$ What amount of net cash flow from operating activities would Malco report on the Year $1$ statement of cash flows?

c$.$ What amount of total liabilities would Malco report on the December $31,$ Year $1,$ balance sheet?

d$.$ What amount of retained earnings would Malco report on the December $31,$ Year $1,$ balance sheet?

e$.$ What amount of net cash flow from financing activities would Malco report on the Year $1$ statement of cash flows?

f$.$ What amount of interest expense would Malco report on the Year $2$ income statement?

g$.$ What amount of net cash flow from operating activities would Malco report on the Year $2$ statement of cash flows?

h$.$ What amount of total assets would Malco report on the December $31,$ Year $2,$ balance sheet?

i$.$ What amount of net cash flow from investing activities would Malco report on the Year $2$ statement of cash flows?

j$.$ If Malco Enterprises paid a $$3,000$ dividend during Year $2,$ what retained earnings balance would it report on the December $31,$ Year $2,$ balance sheet?

Complete this question by entering your answers in the tabs below.

Accounting Equation

Req $A$ to J

a$.$ What amount of interest expense would Malco report on the Year $1$ income statement?

b$.$ What amount of net cash flow from operating activities would Malco report on the Year $1$ statement of cash flows?

c$.$ What amount of total liabilities would Malco report on the December $31,$ Year $1,$ balance sheet?

d$.$ What amount of retained earnings would Malco report on the December $31,$ Year $1,$ balance sheet?

e$.$ What amount of net cash flow from financing activities would Malco report on the Year $1$ statement of cash flows?

f$.$ What amount of interest expense would Malco report on the Year $2$ income statement?

g$.$ What amount of net cash flow from operating activities would Malco report on the Year $2$ statement of cash flows?

h$.$ What amount of total assets would Malco report on the December $31,$ Year $2,$ balance sheet?

i$.$ What amount of net cash flow from investing activities would Malco report on the Year $2$ statement of cash flows?

j$.$ If Malco Enterprises paid a $$3,000$ dividend during Year $2,$ what retained earnings balance would it report on the December $31,$ Year $2,$ balance sheet?

Note: For all requirements, enter cash outflows as negative amounts.

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a$.$ Interest expense

b$.$ Net cash flow from operating activities

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