7-27 Norman Co borrowed $15,000 from the local bank in April 1 2012 when the company was started. The note has an 8 percent annual interest rate and…

7-27 Norman Co borrowed $15,000 from the local bank in April 1 2012 when the company was started. The note has an 8 percent annual interest rate and a one year term maturity. Norman co recognized $42000 of the revenue on account in 2012 and $56,000 of revenue on account in 2013. Cash collections from accounts receivable were $38000 in 2012 and $58000 in 2013. Norman Co paid $26000 of salaries expense in 2012 and $32000 of salaries expense on 2013. Normal Co paid the loan and interest at the maturity date, Required: a) Organize the information in accounts under an accounting equation B) What amount of net cash flow from operating activities would be reported on the 2012 cash flow statement? c) What amount of interest expense would be reported on the 2012 income statement? d) What amount of total liabilities would be reported on the December 31, 2012 balance sheet? e) What amount of retained earnings would be reported on the December 31, 2012 balance sheet? f) What amount of cash flow from financing activities would be reported on the 2012 statement of cash flows? g) What amount of interest expense would be reported on the 2012 income statement? H) What amount of cash flows from operating activities would be reported on the 2013 cash flow statement? I) What amount of assets would be reported on the December 31 2013 balance sheet?

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