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 The business was started when the company received $50,000 from the issue of common stock Purchased equipment inventory of $174,500 on account Sold equipment for $205,500 cash (not including sales tax) Sales tax of 7 percent is collected when the merchandise is sold The merchandise had a cost of $130,500 Provided a six month warranty on the equipment sold Based on industry estimates, the warranty claims would amount to 4 percent of sales Paid the sales tax to the state agency on $155,500 of the sales On September 1, Year 1, borrowed $21,500 from the local bank The note had a 5 percent interest rate and matured on March 1, Year 2 Paid $6,000 for warranty repairs during the year Paid operating expenses of $53,500 for the year Paid $125,300 of accounts payable Recorded accrued interest on the note issued in transaction no 6 Exercise 9 8A (Algo) Part b b 2 Prepare the balance sheet for Year 1 (Round your answers to the nearest dollar amount ) b 3 Prepare the statement of cash flows for Year 1 (Enter amounts to be deducted and cash outflows with a minus sign Round your answers to the nearest whole dollar )

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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

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:

The business was started when the company received $50,000 from the issue of common stock.
Purchased equipment inventory of $174,500 on account.
Sold equipment for $205,500 cash (not including sales tax). Sales tax of 7 percent is collected when the merchandise is sold. The merchandise had a cost of $130,500.
Provided a six-month warranty on the equipment sold. Based on industry estimates, the warranty claims would amount to 4 percent of sales.
Paid the sales tax to the state agency on $155,500 of the sales.
On September 1, Year 1, borrowed $21,500 from the local bank. The note had a 5 percent interest rate and matured on March 1, Year 2.
Paid $6,000 for warranty repairs during the year.
Paid operating expenses of $53,500 for the year.
Paid $125,300 of accounts payable.
Recorded accrued interest on the note issued in transaction no. 6.

Exercise 9-8A (Algo) Part b

b-2. Prepare the balance sheet for Year 1. (Round your answers to the nearest dollar amount.)

b-3. Prepare the statement of cash flows for Year 1. (Enter amounts to be deducted and cash outflows with a minus sign. Round your answers to the nearest whole dollar.)