Required information [The following information applies to the questions displayed below.] Sage Inc. experienced the following transactions for Year 1, its first year of operations: Issued common stock for $120,000 cash. Purchased $200,000 of merchandise on account. Sold merchandise that cost $154,000 for $306,000 on account. Collected $274,000 cash from accounts receivable. Paid $180,000 on accounts payable. Paid $56,000 of salaries expense for the year. Paid other operating expenses of $72,000. Sage adjusted the accounts using the following information from an accounts receivable aging schedule: Number of Days Past Due Amount Percent Likely to Be Uncollectible Allowance Balance Current $ 19,200 0.01 030 8,000 0.05 3160 1,600 0.10 6190 1,600 0.20 Over 90 days 1,600 0.50 b. Prepare the income statement, statement of changes in stockholders equity, balance sheet, and statement of cash flows for Sage Inc. for Year 1.

Required information [The following information applies to the questions displayed below.) Sage Inc. experienced the following transactions for Year 1, its first year of operations: 1. Issued common stock for $120,000 cash. 2. Purchased $200,000 of merchandise on account. 3. Sold merchandise that cost $154,000 for $306,000 on account. 4. Collected $274,000 cash from accounts receivable. 5. Paid $180,000 on accounts payable. 6. Paid $56,000 of salaries expense for the year. 7. Paid other operating expenses of $72,000. 8. Sage adjusted the accounts using the following information from an accounts receivable aging schedule: Number of Days Past Due Amount Current $19,200 0-30 8,000 31-60 1,600 61-90 1,600 Over 90 days 1,600 Percent Likely to Be Allowance Uncollectible Balance 0.01 0.05 0.10 0.20 0.50 b. Prepare the income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for Sage Inc. for Year 1. Complete this question by entering your answers in the tabs below. Required Required Required Required B Inc B Stmt B Bal B Stmt Prepare the statement of cash flows for Sage Inc. for Year 1. (Amounts to be deducted should be indicated with a minus sign.) SAGE INC. Statement of Cash Flows For the Year Ended Year 1 Cash flows from operating activities: $ 0 Net cash flow 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 nagrad P Rol shoot