he foliowing transactions apply to Ozark Sales for Year 1 : 1. The business was started when the company recelved $48,500 from the issue of common stock. L Purchased equipment inventocy of $174,000 on account. 1. Sold equipment for $199,000 cash (not including soles tax) Sales tax of 7 percent is collected when the merchandise is sold. The merchandise had a cost or $124,000. 1. Provided a six-month warranty on the equipment sold. Based on industry estimates, the warranty ciaims would amount to 5 percent of sales. 1. Paid the sales tax to the state agency on $149,000 of the sales. 1. 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. 1. Paid $5,600 for warranty repairs during the year. 1. Paid operating expenses of $54,000 for the year. 2. Paid $125.600 of accounts payable. 3. Recorded accrued interest on the note issued in transaction na, 6. equitred: 1. 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 fiows column, classify the cash flows as operating activites (OA), investing activites (AA). or financing activaies (FA) 3. Prepore the income stotement, balance sheet, and stotement of cash fiows for Vear 1 . Complete this question by entering your answers in the tabs below. Prepare the income statement for Year 1. Note: Round your answers to the nearest whole dollar. Prepare the statement of cash flows for Year 1. Note: Cash outflows should be indicated with a minus sign. Complete this question by entering your answers in the tabs below. What is the total amount of current liabilities at December 31 , Year 1 ? Note: Round your answer to the nearest whole dollar. Complete this question by entering your answers in the tabs below. Prepare the balance sheet for Year 1. Nobe: Round your answers to the nearest whole dollat