Required information 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 $49,500 from the issue of common stock. 2. Purchased equipment inventory of $175,000 on account. 3. Sold equipment for $201,000 cash (not including sales tax). Sales tax of 6 percent is collected when the merchandise is sold. The merchandise had a cost of $126,000. 4. Provided a six-month warranty on the equipment sold. Based on industry estimates, the warranty claims would amount to 4 percent of sales. 5. Paid the sales tax to the state agency on $151,000 of the sales. 6. On September 1, Year 1, borrowed $21,000 from the local bank. The note had a 7 percent interest rate and matured on March 1, Year 2. 7. Paid $5,800 for warranty repairs during the year. 8. Paid operating expenses of $52,500 for the year. 9. Paid $124,400 of accounts payable. 10. Recorded accrued interest on the note issued in transaction no. 6. Exercise 9-8A (Algo) Part b Required information b-1. Prepare the income statement for Year 1. Note: Round your answers to the nearest dollar amount. OZARK SALES Sales revenue Cost of goods sold Gross margin Expenses Operating expenses Warranty expense Total expenses Operating income Interest expense Net income Income Statement For the Year Ended December 31, Year 1 52,500 $ 201,000 126,000 75,000 52,500 22,500 1,470 SA $ 21,030 f 3 b-2. Prepare the balance sheet for Year 1. Note: Round your answers to the nearest dollar amount. OZARK SALES Balance Sheet As of December 31, Year 1 Assets ok Total assets Liabilities Total liabilities Stockholders' equity $ 0 Total stockholders' equity 0 Total liabilities and stockholders' equity $ 0 b-3. Prepare the statement of cash flows for Year 1. Note: Enter amounts to be deducted and cash outflows with a minus sign. Round your answers to the nearest whole dollar. OZARK SALES Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flows from operating activities: Net cash flows from operating activities Cash flows from investing activities: Cash flows from financing activities Net cash flows from financing activities Net change in cash Ending cash balance $ 0 0 0 $ 0