I DID SOME OF IT BUT I THINK ITS WRONG

Required information {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 $48,500 from the issue of common stock 2. Purchased equipment inventory of $175,500 on account 3. Sold equipment for $205,000 cash (not including sales tax). Sales tax of 8 percent is collected when the merchandise is sold. The merchandise had a cost of $130,000. 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 $155,000 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 $5,500 for warranty repaits during the year. 8. Paid operating expenses of $56,000 for the year. 9. Paid $124,800 of accounts payable. 10. Recorded accrued interest on the note issued in transaction no. 6. b-1. Prepare the income statement for Year 1. (Round your answers to the nearest dollar amount.) OZARK SALES Income Statement For the Year Ended December 31, Year 1 Sales revenue Cost of goods sold Gross margin Expenses Warranty expense (6,160) Other operating expenses (56,000) $ 205,000 (130,000) 75,000 Total operating expenses Operating income Interest expense (62,160) 12,840 (1,010) Net income $ 11 830 Balance Sheet As of December 31, Year 1 Assets Cash Merchandise inventory 48,500 $ 48,500 Total assets Liabilities Accounts payable Sales tax payable Notes payable Warranty payable Interest payable 21,000 Total liabilities Stockholders' equity 21,000 I JULKIUIUIS UUILV Required information Total stockholders' equity Total liabilities and stockholders' equity 0 21,000 $ b-3. Prepare the statement of cash flows for Year 1. (Amounts to be deducted and losses 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 $ 205,000 Inflow from sales tax 16,400 Outflow to purchase inventory For the Year Ended December 31, Year 1 Cash flow from operating activities Inflow from customers $ 205,000 Inflow from sales tax 16,400: Outflow to purchase inventory Outflow for expenses of 3 Outflow for sales tax Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities $ 221,400 Net cash flows from financing activities Net change in cash Plus: Beginning cash balance Ending cash balance 221,400 $ 221,400