The following information is available from the balance sheets at the ends of the two most recent
years and the income statement for the most recent year of Impact Company
a. Short-term notes payable represents a 12-month loan that matured in November 2008. Interest
of 12% was paid at maturity.
b. One million dollars of serial bonds had been issued ten years earlier. The first series of
$200,000 matured at the end of 2008, with interest of 8% payable annually.
c. Cash flow from operations was $185,000 in 2008. The amounts of interest and taxes paid
during 2008 were $89,000 and $96,000, respectively