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Use the following information about Valerie Sporty to answer Questions 28 32. Valerie Sporty...

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Accounting

Use the following information about Valerie Sporty to answer Questions 28 32. Valerie Sporty has just acquire a brand-spanking new, shiny red sports car (for her business, of course) at a cash price of $70,000. She put a certain amount down and financed the balance with a note requiring that Valerie make five equal year-end payments to retire the debt. A partial amortization table is as follows:

Period

Payment

Interest

Principal

Carrying Value

0

$60,000

1

$15,426

$5,400

$10,026

49,974

2

15,426

4,498

10,928

39,046

3

15,426

3,514

11,912

27,134

30. What amount or amounts will be reported on the Year 1 statement of cash flows for Valeries business? In what section or sections? What would be the likely label or labels used?

31. What amount from this table will be reported on the Year 2 income statement for Valeries business? What will it likely be called?

32. At the end of Year 3, what amount or amounts from this table will be reported on the balance sheet for Valeries business? In what section/s and under what title/s?

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