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On May 1, 2013, Ozark's Sandwich Shop loaned $10,000 to Ben Spell for one year at 9 percent interest.
Required:
Answer the following questions:
a. What is Ozark's interest income for 2013?
b. What is Ozark's total amount of receivables at December 31, 2013?
c. What amounts will be reported on Ozark's 2013 statement of cash flows?
d. What is Ozark's interest income for 2014?
e. What is the total amount of cash that Ozark's will collect in 2014 from Ben Spell?
f. What amounts will be reported on Ozark's 2014 statement of cash flows?
g. What is the total amount of interest that Ozark's earned on the loan to Ben Spell?
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