Required information [The following information applies to the questions displayed below] The following transactions apply to Ozark Sales for Yeart 1. The business was started when the company received $48,500 from the issue of common stock 2. Purchased equipment inventory of $175,500 on account. 3. Sold equipment for $200,500 cash (not including sales tax) Sales tax of 7 percent is collected when the merchandise is sold. The merchandise had a cost of $125.500. 4. Provided a six-month warranty on the equipment sold. Based on industry estimates the warranty claims would amount to 5 percent of sales. 5. Paid the sales tax to the state agency on $150.500 of the sales, 6. On September 1, Year 1. borrowed $20,500 from the local bank. The note had a 6 percent interest rate and matured on March 1, Year 2 7. Paid $5.400 for warranty repairs during the year, 8. Paid operating expenses of $52,500 for the year 9. Paid $124,900 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.) 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 $ 0 Total assets Liabilities b-3. Prepare the statement of cash flows for Year 1. (Amounts to be deducted and losses should be indicated with minus sign. Round your answers to the nearest dollar amount.) OZARK SALES Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flow from operating activities $ 0 Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities