Chapter 9 Homework 0 5 Help Save & Exit Submit Check my work 4 Part 2 of 3 Required information Exercise 9-8A Current liabilities LO 9-1, 9-2, 9-4 {The following information applies to the questions displayed below.) The following transactions apply to Ozark Sales for Year 1: 14.28 points eBook Hint Print References 1. The business was started when the company received $48,500 from the issue of common stock. 2. Purchased equipment inventory of $175,500 on account. 3. Sold equipment for $198,500 cash (not including sales tax). Sales tax of 6 percent collected when the merchandise is sold. The merchandise had a cost of $123,500. 4. Provided a six-month warranty on the equipment sold. Based on industry estimates, the warranty claims would amount to 4 percent of sales. 5. Paid the sales tax to the state agency on $148,500 of the sales. 6. On September 1, Year 1, borrowed $22,000 from the local bank. The note had a 5 percent interest rate and matured on March 1, Year 2 7. Pald $5,400 for warranty repairs during the year. 8. Paid operating expenses of $53,000 for the year. 9. Paid $124,600 of accounts payable. 10. Recorded accrued interest on the note issued transaction no. 6. b-2. Prepare the balance sheet for Year 1. (Round your answers to the nearest dollar amount.) OZARK SALES Balance Sheet As of December 31, Year 1 Assets Cash Merchandise inventory Total assets $ 0 Liabilities Accounts payable Sales tax payable Notes payable Warranty payable Interest payable Total liabilities 0 Stockholders' equity Common stock Retained earnings 0 Total stockholders' equity Total liabilities and stockholders' equity $ 0 b-3. Prepare the statement of cash flows for Year 1. (Amounts to be deducted and losses should be indicated with minus sign. Round your answers to the nearest dollar amount.) OZARK SALES Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flow from operating activities: Inflow from customers $ 198,500 Inflow from sales tax Outflow for expenses Outflow for sales tax Outflow to purchase inventory Net cash flow from operating activities Cash flows from investing activities: Cash flows from financing activities $ 198,500 0 Inflow from loan $ 22.000 Inflow from stock issue 48,500 70,500 269,000 Net cash flows from financing activities Net change in cash Plus: Beginning cash balance Ending cash balance $ 269,000