Prepare a balance sheet, income statement and statement of cash flow.

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 $49,500 from the issue of common stock 2. Purchased equipment inventory of $176,500 on account 3. Sold equipment for $193,500 cash (not including sales tax). Sales tax of 7 percent is collected when the merchandise is sold. The merchandise had a cost of $118,500. 4. Provided a six-month warranty on the equipment sold. Based on industry estimates, the warranty claims would amount to 5 percent of sales 5. Paid the sales tax to the state agency on $143,500 of the sales. 6. On September 1, Year 1, borrowed $20,500 from the local bank. The note had a 6 percent interest rate and matured on March 1, Year 2 7. Paid $5,600 for warranty repairs during the year. 8. Paid operating expenses of $55,000 for the year, 9. Paid $125,000 of accounts payable. 10. Recorded accrued interest on the note issued in transaction no. 6