(Solved): HW help! all one question On January 1, Year 1, Brown Company borrowed cash from First Bank by issui ...

On January 1, Year 1, Brown Company borrowed cash from First Bank by issuing a $$\$41,000$$ face value, four-year term note that had an 8 percent annual interest rate. The note is to be repaid by making annual cash payments of $$\$12,379$$ that include both interest and principal on December 31 of each year. Brown used the proceeds from the loan to purchase land that generated rental revenues of $$\$21,730$$ cash per year. d. Does cash outflow from operating activities remain constant or change each year? Remains constant Changes each year Boyd Company has a line of credit with State Bank. Boyd can borrow up to $$\$590,000$$ at any time over the course of the Year 1 calendar year. The following table shows the prime rate expressed as an annual percentage along with the amounts borrowed and repaid during Year 1 . Boyd agreed to pay interest ot an annual rate equal to 1 percent above the bank's prime rate. Funds are borrowed or repaid on the first day of each month. Interest is payable in cash on the last day of the month. The interest rate is applied to the outstanding monthly balance. For example, Boyd pays 7 percent (6 percent $$+1$$ percent) annual interest on $$\$90,000$$ for the month of January. Boyd earned $$\$44,000$$ of cash revenue during Year 1. Required Prepare an income statement, balance sheet, and statement of cash flows for Year 1 . Note: Do not round intermediate calculations and round your answers to the nearest dollar amount. Statement of Cash Flows only: Items to be deducted must be indicated with a minus sign. BOYD COMPANY Statements of Cash Flows For the Year Ended December 31, Year 1