\begin{tabular}{|l|l|l|} \hline \multicolumn{2}{|c|}{ OZARK SALES } \\ \hline \multicolumn{2}{|c|}{ For the Year Ended December 31, Year 1 } \\ \hline Cash flows from operating activities & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline Net cash flow from operating activities & & $ \\ \hline Cash flows from investing activities & & \\ \hline Cash flows from financing activities & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline Net cash flows from financing activities & & \\ \hline Net change in cash & & \\ \hline & & \\ \hline Ending cash balance & & \\ \hline \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{25}{|c|}{ OZARK SALES } \\ \hline \multicolumn{25}{|c|}{ Horizontal Statements Model } \\ \hline \multirow{3}{*}{EventNumber} & \multicolumn{17}{|c|}{ Balance Sheet } & \multicolumn{5}{|c|}{ Income Statement } & \multirow{3}{*}{\multicolumn{2}{|c|}{StatementofCashFlows}} \\ \hline & \multicolumn{3}{|c|}{ Assets } & \multirow[b]{2}{*}{=} & \multicolumn{9}{|c|}{ Liabilities } & \multicolumn{4}{|c|}{ Stockholders' Equity } & \multirow[b]{2}{*}{ Revenue } & \multirow[b]{2}{*}{-} & \multirow[b]{2}{*}{ Expense } & \multirow[b]{2}{*}{=} & \multirow{2}{*}{NetIncome} & & \\ \hline & Cash & + & MerchandiseInventory & & AccountsPayable & + & SalesTaxPayable & + & WarrantyPayable & + & InterestPayable & + & NotesPayable & + & CommonStock & + & RetainedEarnings & & & & & & & \\ \hline 1. & & + & & = & & + & & + & & + & & + & & + & & + & & & -1 & & = & & & r \\ \hline 2. & & + & & = & & + & & + & & +1 & & + & & + & & + & & & -1 & & = & & 7 & P \\ \hline 3a. & & + & & = & & + & & + & & + & & +1 & & + & & + & & & - & & = & & & P \\ \hline 3b. & & + & & = & & + & & + & & +1 & & + & & +1 & & + & & & -1 & & =1 & & 1 & \\ \hline 4. & & + & & = & & + & & + & & + & & + & & + & & + & & & - & & = & & 7 & p \\ \hline 5. & & + & & = & & + & & + & & + & & + & & + & & + & & & - & & = & & & 7 \\ \hline 6. & & + & & = & & + & & + & & + & & +? & & + & & + & & & - & & = & & & | \\ \hline 7. & & + & & = & & + & & + & & + & & + & & + & & + & & & -1 & & = & & & \\ \hline 8. & & + & & = & & + & & + & & + & & +7 & & + & & + & & & - & & = & & & 7 \\ \hline 9. & & + & & = & & + & & + & & + & & + & & + & & + & & & -1 & & =1 & & & F \\ \hline 10. & & + & & = & & + & & + & & + & & + & & + & & + & & & - & & = & & & \\ \hline Balance & 0 & + & 0 & = & 0 & + & 0 & + & 0 & + & 0 & + & 0 & + & 0 & + & 0 & 0 & - & 0 & = & 0 & 0 & NC \\ \hline \end{tabular} \begin{tabular}{|l|l|l|} \hline \multicolumn{2}{|c|}{ OZARK SALES } \\ \hline \multicolumn{2}{|c|}{ As of December 31, Year 1 } \\ \hline Assets & & \\ \hline & & \\ \hline & & \\ \hline Total assets & & \\ \hline Liabilities & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline Total stockholders' equity & & \\ \hline Stockholders' equity & & \\ \hline \end{tabular} The following transactions apply to Ozark Sales for Year 1: 1. The business was started when the company received $50,000 from the issue of common stock. 2. Purchased equipment inventory of $177,000 on account. 3. Sold equipment for $204,000 cash (not including sales tax). Sales tax of 6 percent is collected when the merchandise is sold. The merchandise had a cost of $129,000. 4. Provided a six-month warranty on the equipment sold. Based on industry estimates, the warranty claims would amount to 5 percent of sales. 5. Paid the sales tax to the state agency on $154,000 of the sales. 6. On September 1, Year 1, borrowed $21,500 from the local bank. The note had a 6 percent interest rate and matured on March 1, Year 2. 7. Paid $5,500 for warranty repairs during the year. 8. Paid operating expenses of $54,500 for the year. 9. Paid $125,700 of accounts payable. 10. Recorded accrued interest on the note issued in transaction no. 6. Required: a. Use a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. More specifically, record the amounts of the events into the model. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities (OA), investing activities (IA), or financing activities (FA). b. Prepare the income statement, balance sheet, and statement of cash flows for Year 1. c. What is the total amount of current liabilities at December 31, Year 1? \begin{tabular}{|l|l|l|} \hline \multicolumn{2}{|c|}{ OZARK SALES } \\ \hline \multicolumn{2}{|c|}{ Income Statement } \\ \hline & & \\ \hline & & \\ \hline For the Year Ended December 31, Year 1 \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline Total operating expenses & & \\ \hline & & \\ \hline \end{tabular} Total current liabilities