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 $174,500 on account. 3. Sold equipment for $206,000 cash (not including sales tax). Sales tax of 6 percent is collected when the merchandise is sold. The merchandise had a cost of $131,000. 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 $156,000 of the sales. 6. On September 1, Year 1, borrowed $22,000 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 $55,000 for the year. 9. Paid $124,400 of accounts payable. 10. Recorded accrued interest on the note issued in transaction no. 6. b-1. Prepare the income statement for Year 1. (Round your answers to the nearest dollar amount.) OZARK SALES Income Statement For the Year Ended December 31, Year 1 Sales revenue $ 206,000 131,000 75,000 54,500 Cost of goods sold Gross margin Expenses Operating expenses Warranty expense Warranty payable Total expenses Operating income Interest expense 5,600 8,240 68,340 6,660 342 Net income $ 6,318 b-2. Prepare the balance sheet for Year 1. (Round your answers to the nearest dollar amount.) OZARK SALES Balance Sheet As of December 31, Year 1 Assets Cash S 92.800 Merchandise inventory 43,000 Total assets $ 135,800 Liabilities Total liabilities 0 Stockholders' equity 0 Total stockholders' equity Total liabilities and stockholders' equity $ 0 b-3. Prepare the statement of cash flows for Year 1. (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: $ 0 Net cash flows from operating activities Cash flows from investing activities: Cash flows from financing activities 0 Net cash flows from financing activities Net change in cash 0 Ending cash balance $ 0