! 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 $50,000 from the issue of common stock. 2. Purchased equipment inventory of $380,000 on account. 3. Sold equipment for $510,000 cash (not including sales tax). Sales tax of 8 percent is collected when the merchandise is sold. The merchandise had a cost of $330,000. 4. Provided a six-month warranty on the equipment sold. Based on industry estimates, the warranty claims would amount to 2 percent of sales 5. Paid the sales tax to the state agency on $400,000 of the sales, 6. On September 1. Year 1, borrowed $50,000 from the local bank. The note had a 4 percent interest rate and matured on March 1, Year 2. 11. 7. Paid $6,200 for warranty repairs during the year. 8. Pald operating expenses of $78,000 for the year. 9. Paid $250,000 of accounts payable. 10. Recorded accrued Interest on the note issued in transaction no. 6. Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flows from operating activities: Inflow from customers $ 510,000 Inflow from sales tax Outflow for expenses $ 510,000 Net cash flows from operating activities Cash flows from investing activities Cash flows from financing activities: Inflow from stock issue $ 50,000 50,000 Inflow from loan 100,000 610,000 Net cash flows from financing activities Net change in cash Plus: Beginning cash balance Ending cash balance $ 610,000