Exercise 9-8A (Algo) 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 $175,000 on account. 3. Sold equipment for $201,500 cash (not including sales tax). Sales tax of 7 percent is collected when the merchandise is sold. The merchandise had a cost of $126,500. 4. Provided a six-month warranty on the equipment sold. Based on Industry estimates, the warranty claims would amount to 3 percent of sales. 5. Paid the sales tax to the state agency on $151,500 of the sales. 6. On September 1, Year 1, borrowed $20.500 from the local bank. The note had a 7 percent Interest rate and matured on March 1, Year 2 7. Paid $5,500 for warranty repairs during the year. 8. Pald operating expenses of $52,500 for the year. 9. Paid $125,800 of accounts payable. 10. Recorded accrued interest on the note issued in transaction no. 6. b-2. Prepare the balance sheet for Year 1 Note: Round your answers to the nearest dollar amount. Answer is not complete. OZARK BALES Balance Sheet As of December 21, Year 1 Assets Cash Merchandise inventory Labe Accounts payable Sales tax payable Warranty payable Interest payable Notes payable Total liabilities Stockholders equity Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 00000 00 20,500 20,000 o 20,000 b-3. Prepare the statement of cash flows for Year 1. Note: Enter amounts to be deducted and cash outflows with a minus sign. Round your answers to th Answer is complete but not entirely correct. OZARK SALE B statement of Cash Flows For the Year Ended December 31, Year 1 Cash flows from operating activities: Inflow from customers Inflow from sales tax Outflow to purchase inventory Outtow for sa Outflow for expenses 00000 201,500 14,105 (151.500) (2.000) O (57,500) Not cash flows from operating activities Cash flows from investing activities: Cash flows from financing activities Inflow from stock issue Inflow from loan Not cash flows from financing activities Not change in cash Plus: Beginning cash balance Ending cash balance 00 49,000 20,000 Is (45,805) 60,500 23,606 DO 23,606