ending cash balance
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: 1. The business was started when the company received $49,000 from the issue of common stock. 2. Purchased equipment inventory of $177,000 on account. 3. Sold equipment for $191,000 cash (not including sales tax). Sales tax of 6 percent is collected when the merchandise is sold. The merchandise had a cost of $116,000. 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 $141,000 of the sales. 6. On September 1, Year 1, borrowed $21,000 from the local bank. The note had a 5 percent interest rate and matured on March 1, Year 2 7. Paid $5,700 for warranty repairs during the year. 8. Paid operating expenses of $54,500 for the year. 9. Paid $124.500 of accounts payable. 10. Recorded accrued interest on the note issued in transaction no. 6. Required information Required a. Show the effects of these transactions on the financial statements using a horizontal statements model. (Use a + to indicate or a - for decrease. In the Statement of Cash Flows column, indicate whether the item is an operating activity (OA), investing a (IA), or financing activity (FA). Columns for events that have no effect on any of the elements should be left blank.) (Note: Note will require an input.) Answer is complete and correct. Event Assets Liabilities Equity Revenue Expenses Net Income Statement of Cash Flows FA 1 + + 2 + + + + + + + + IO 3b ololo + 4 + 5 + 6 + + FA 7 Bloo + + 8 OOO 9 + > 10 Prey Next > 1 of 15 3 2 Q Search b-1. Prepare the income statement for Year 1. (Round your answers to the near 2 of 3 OZARK SALES Income Statement For the Year Ended December 31, Year 1 Sales revenue $ 191,000 116,000 75,000 Book Hint Cost of goods sold (Gross margin Expenses Other operating expenses Warranty expense 54,500 Ask Print Total operating expenses Operating income Interest expense 54,500 20.500 350 $ 20,150 15 OZARK SALES Balance Sheet As of December 31, Year 1 Assets Cash Merchandise inventory $ 79,300 61,000 Total assets $ 140,300 $ Liabilities Accounts payable Sales tax payable Notes payable Interest payable 52,500 3,000 21,000 350 76,850 Total liabilities Stockholders' equity 76,850 Total liabilities Stockholders' equity Common stock 0 Total stockholders' equity Total liabilities and stockholders' equity $ 76.850 Statement of Cash Flower For the Year Ended December 31, Year 1 Cash flow from operating activities: $ 0 Net cash flow from operating activities Cash flows from investing activities: Cash flows from financing activities $ 49,000 21,000 70,000 70.000 Net cash flows from financing activities Net change in cash (Plus. Beginning cash balance 0 S
