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Malco Enterprises issued $10000 of common stock when the company was started In addition Malco borrowed $36000 from a local bank on July

Malco Enterprises issued $10,000 of common stock when the company was started. In addition, Malco borrowed $36,000 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 $72,500 of revenue on account in 2016 and $85,200 of revenue on account in 2017. Cash collections of accounts receivable were $61,300 in 2016 and $71,500 in 2017. Malco paid $39,000 of other operating expenses in 2016 and $45,000 of other operating expenses in 2017. Malco repaid the loan and interest at the maturity date. Required Based on this information, answer the following questions. a. What amount of interest expense would Malco report on the 2016 income statement? b. What amount of net cash flow from operating activities would Malco report on the 2016 statement of cash flows? c. What amount of total liabilities would Malco report on the December 31, 2016, balance sheet? d. What amount of retained earnings would Malco report on the December 31, 2016, balance sheet? e. What amount of net cash flow from financing activities would Malco report on the 2016 statement of cash flows? f. What amount of interest expense would Malco report on the 2017 income statement? g. What amount of net cash flow from operating activities would Malco report on the 2017 statement of cash flows? h. What amount of total assets would Malco report on the December 31, 2017, balance sheet?

Apr 24 2020 View more View Less

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