From the balance sheet cash......................................................................................... $30,000 accounts receivable..............................................................150,000 inventory ..................................................................................200,000 plant assets(net of accumulated depreciation)................. 500,000 current liabilities......................................................................150,000 total stockholder's equity........................................................300,000 total assets................................................................................1,000,000 from the income statement: net sales.....................................................................................$1,500,000 costs of goods sold...................................................................1,080,000 operating expenses................................................................... 315,000 interest expenses....................................................................... 84,000 income tax expenses...................................................................6,000 net income.....................................................................................15,000 From the statement of cash flows: net cash provided by operating activities (including interest paid of $79,000)..............................................$40,000 net cash used in investing activities............................................(46,000) Financing activities: Amounts borrowed....................................................$50,000 Repayment of amounts borrowed...........................(14,000) Dividends paid...........................................................(20,000) Net cash provided by financing activities...............................16,000 Net increase in cash during the year...........................................$10,000
Instructions: explain how the interest expense shown in the income statement could be $84,000, when the interest payment appearing in the statement of cash flows is only $79,000.