Required information [The following information applies to the questions displayed below.) The following transactions apply to Ozark Sales for 2018: 1. The business was started when the company received $50,000 from the issue of common stock. 2. Purchased equipment inventory of $176,500 on account. 3. Sold equipment for $202,500 cash (not including sales tax). Sales tax of 8 percent is collected when the merchandise is sold. The merchandise had a cost of $127,500. 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 $152,500 of the sales. 6. On September 1, 2018, borrowed $20,000 from the local bank. The note had a 7 percent interest rate and matured on March 1, 2019. 7. Paid $5,700 for warranty repairs during the year. 8. Paid operating expenses of $54,500 for the year. 9. Paid $125,700 of accounts payable. 10. Recorded accrued interest on the note issued in transaction no. 6. Required a. Record the given transactions in a horizontal statements model like the following one. (Enter any decreases to account balances and cash outflows with a minus sign. In the Cash Flow column, indicate whether the item is an operating activity (OA), an investing activity (IA), or a financing activity (FA), and leave the cell blank if there is no effect. Do not round intermediate calculations and round your answers to the nearest whole dollar amounts.) Balance Sheet Liabilities OZARK Horizontal Statements Model Income Statement Stockholders' Equity Net Interest Notes Common Retained Revenue Expense Income Payable Payable Stock Earnings Assets Event No. Statement of Cash Flows Cash + Merchandise Inventory Accounts Payable Sales Tax Payable Warranty Payable + + 1 T 2. + + + + + + + + + + + + + + . . 3b. 4. + + + + + + + + = + + + + + + 5. = + + + + + + 6. + + + + + 1 + 7. + + + + + + 8. + + + + + + 9. + + + + 1 + 10. + + + + Bal. + + + b. Prepare the income statement, balance sheet, and statement of cash flows for 2018. Complete this question by entering your answers in the tabs below. Reg B Inc Stmt Reg B Bal Sheet Reg B Stmt Cash Flows Prepare the income statement for 2018. (Do not round intermediate calculations and round your answers to the nearest whole dollar amount.) OZARK SALES Income Statement For the Year Ended December 31, 2018 Expenses Total operating expenses Complete this question by entering your answers in the tabs below. Req B Inc Req B Bal Req B Stmt Stmt Sheet Cash Flows Prepare the balance sheet for 2018. (Do not round intermediate calculations and round your answers to the nearest whole dollar amount.) OZARK SALES Balance Sheet As of December 31, 2018 Assets Total assets Liabilities Total liabilities Stockholders' equity Total stockholders' equity Total liabilities and stockholders' equity Complete this question by entering your answers in the tabs below. Req B Inc Stmt Req B Bal Sheet Req B Stmt Cash Flows Prepare the statement of cash flows for 2018. (Do not round intermediate calculations and round your answers to the nearest whole dollar amount. Amounts to be deducted should be indicated with a minus sign.) OZARK SALES Statement of Cash Flows For the Year Ended December 31, 2018 Cash flows from operating activities Net cash flow 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