Ihe following transactions apply to Ozark Sales tor Year 1 : 1. The business was started when the company received $48,000 from the issue of common stock. 2. Purchased merchandise inventory of $176,000 on account. 3. Sold merchandise for $207,000 cash (not including sales tax). Sales tax of 8 percent is collected when the merchandise is sold. The merchandise had a cost of $132,000 4. Provided a six-month warranty on the merchandise sold. Based on indusiry estimates, the warranty claims would amount to 5 percent of sales 5. Paid the sales tax to the state agency on $157,000 of the sales. 6. On September 1, Year 1, borrowed $20,000 from the local bank. The note had a 6 percent interest rate and matured on March 1, Year 2 7. Paid $5,500 for warranty repairs during the year. 8. Paid operating expenses of $53,000 for the year. 9. Paid $125,300 of accounts payable. 10. Recorded accrued interest on the note issued in transaction number 6 Exercise 9-8A (Algo) Part C c-1. Prepare the income statement for Year 1. c-2. Prepare the balance sheet for Year 1 c-3. Prepare the statement of cash flows for Year 1