Malco Enterprises issued $15,000 of common stock when the company was started. I

Question

Malco Enterprises issued $15,000 of common stock when the company was started. In addition, Malco borrowed $41,000 from a local bank on July 1, 2016. The note had a 6 percent annual interest rate and a one-year term to maturity. Malco Enterprises recognized $78,000 of revenue on account in 2016 and $90,200 of revenue on account in 2017. Cash collections of accounts receivable were $66,300 in 2016 and $76,500 in 2017. Malco paid $43,500 of other operating expenses in 2016 and $50,000 of other operating expenses in 2017. Malco repaid the loan and interest at the maturity date.   

What amount of interest expense would Malco report on the 2016 income statement?

What amount of net cash flow from operating activities would Malco report on the 2016 statement of cash flows?

What amount of total liabilities would Malco report on the December 31, 2016, balance sheet?

What amount of retained earnings would Malco report on the December 31, 2016, balance sheet?

What amount of net cash flow from financing activities would Malco report on the 2016 statement of cash flows?

What amount of interest expense would Malco report on the 2017 income statement?

What amount of net cash flow from operating activities would Malco report on the 2017 statement of cash flows?

What amount of total assets would Malco report on the December 31, 2017, balance sheet?

What amount of net cash flow from investing activities would Malco report on the 2017 statement of cash flows?

If Malco Enterprises paid a $2,500 dividend during 2017, what retained earnings balance would it report on the December 31, 2017, balance sheet?

What amount of interest expense would Malco report on the 2016 income statement?

Explanation / Answer

Ans Details Amount Ans a 41000*6%*6/12     1,230.00 Ans b Cash collection 66,300.00 Less Cash paid for operating expenses 43,500.00 Cash from Oerating activities 22,800.00 Ans c Loan from Bank 41,000.00 Interest Accrued     1,230.00 Total Liability 42,230.00 Ans d Revenue 78,000.00 Less Operating Expense 43,500.00 Less Interest     1,230.00 Net Profit to Retaned earnings 33,270.00 Ans e Cash inflow from Loan(Financing Activity) 41,000.00

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