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Please show calculations for all boxes Exercise 9-8A (Algo) Current liabilities LO 9-1, 9-2, 9-4 (The following information applies to the questions displayed below.) The
Please show calculations for all boxes
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 $48,000 from the issue of common stock. 2. Purchased equipment inventory of $175,500 on account. 3. Sold equipment for $193,000 cash (not including sales tax). Sales tax of 7 percent is collected when the merchandise is sold. The merchandise had a cost of $118,000. 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 $143,000 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 $5,400 for warranty repairs during the year. 8. Paid operating expenses of $53,500 for the year. 9. Paid $125,900 of accounts payable. 10. Recorded accrued interest on the note issued in transaction no. 6. OZARK SALES Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flows from operating activities: Inflow from customers $ 193,000 Inflow from sales tax Outflow to purchase inventory Outflow for sales tax Outflow for expenses $ 193,000 Net cash flows from operating activities Cash flows from investing activities: Cash flows from financing activities Inflow from stock issue $ 48,000 20,500 68,500 261,500 Net cash flows from financing activities Net change in cash Plus: Beginning cash balance Ending cash balance 0 $ 261,500Step by Step Solution
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