Sage Inc. experienced the following transactions for Year 1, its first year of operations:

1. Issued common stock for $80,000 cash.
2. Purchased $185,000 of merchandise on account.
3. Sold merchandise that cost $154,000 for $306,000 on account.
4. Collected $266,000 cash from accounts receivable.
5. Paid $165,000 on accounts payable.
6. Paid $48,000 of salaries expense for the year.
7. Paid other operating expenses of $64,000.
8. 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	$	24,000		0.01
030		10,000		0.05
3160		2,000		0.10
6190		2,000		0.20
Over 90 days		2,000		0.50

Required

1. Organize the transaction data in accounts under an accounting equation.
2. Prepare the income statement, statement of changes in stockholders equity, balance sheet, and statement of cash flows for Sage Inc. for Year 1.
3. What is the net realizable value of the accounts receivable at December 31, Year 1?

Organize the transaction data in accounts under an accounting equation. (Enter any decreases to account balances with a mil Accounts Titles for Retained Earnings, leave the cell blank.) Prepare the income statement for Sage Inc. for Year 1. repare the statement of changes in stockholders' equity for Sage Inc. for Year 1. repare the balance sheet for Sage Inc. for Year 1. (Be sure to list the assets in the order of their liquidity.) \begin{tabular}{|l|l|c|c||c||c|c} Req A & ReqBIncStmt & ReqBStmtofChanges & ReqBBalSheet & ReqBStmtCashFlows & Req C \\ \hline \end{tabular} Prepare the statement of cash flows for Sage Inc. for Year 1. (Cash outflows should be indicated with a minus sign.) SAGE INC. Statement of Cash Flows For the Year Ended Year 1 \begin{tabular}{|l|l|l|} \hline Cash flows from operating activities: & & \\ \hline Inflow from customers & & \\ \hline Outflow for expenses & & \\ \hline Outflow for inventory & & \\ \hline Net cash flow from operating activities & & \\ \hline Cash flows from investing activities & & \\ \hline Cash flows from financing activities & & \\ \hline Cash inflow from stock issued & & \\ \hline Net cash flows from financing activities & & \\ \hline Net change in cash & & \\ \hline Elus: Beginning cash balance & & \\ \hline \end{tabular} What is the net realizable value of the accounts receivable at December 31 , Year 1