From the balance sheet:

Cash.............................................................$30,000
Accounts receivable.......................................150,000
Inventory.......................................................200,000
Plant assets(net of acc. deprec.)..................... 500,000
Current liabilities............................................150,000
Total stockholders equity.................................300,000
Total assets.....................................................1,000,000
From the income statement:
netsales..............................................................$ 1,500,000
Cost of goods sold.................................................1,080,000
Operating expenses................................................315,000
interestexpense.........................................................84,000
income taxexpense....................................................6,000
Netincome.............................................................15,000 From the statement of cash flows:
Net cash provided by operating............................... $40,000
(including interest paid of $79,000)
net cash used in investing activities.............................(46,000)
Financing activities:
Amounts borrowed..............................$ 50,000
repayment of amounts borrowed............ (14,000)
Dividends paid........................................(20,000)
Net cash provided by financingactivities.......................16,000
Net increase in cash during theyear.................................... $10,000

Explain how the interest expense shown in the income statementcould be $84,000 when the interest payment appearing in thestatement of cash flows is only $79,000.