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

1. Issued common stock for $120,000 cash.
2. Purchased $195,000 of merchandise on account.
3. Sold merchandise that cost $168,000 for $334,000 on account.
4. Collected $302,000 cash from accounts receivable.
5. Paid $175,000 on accounts payable.
6. Paid $66,000 of salaries expense for the year.
7. Paid other operating expenses of $82,000.
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	$	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.

Sage Inc. experienced the following transactions for Year 1, its first year of operations: 1. Issued common stock for $120,000 cash. 2. Purchased $195,000 of merchandise on account. 3. Sold merchandise that cost $168,000 for $334,000 on account. 4. Collected $302.000 cash from accounts receivable. 5. Paid $175,000 on accounts payable. 6. Paid $66,000 of salaries expense for the year. 7. Paid other operating expenses of $82,000. 8. Sage adjusted the accounts using the following information from an accounts receivable aging schedule: Allowance Balance Number of Days Past Due Current 0-30 31-60 61-90 Over 90 days Amount $19,200 8,000 1,600 1,600 1,600 Percent Likely to Be Uncollectible 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 B Inc Required B Required B Bal Required B Stmt Stmt Stmt Cash Stkholder Eq Sheet Flows Prepare the statement of changes in stockholders' equity for Sage Inc. for Year 1. SAGE INC. Statement of Changes in Stockholders' Equity For the Year Ended Year 1 Beginning common stock $ 0 Ending common stock Beginning retained earnings Ending retained earnings Total stockholders' equity 0 0 $ 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 B Inc Required B Stmt Stkholder Eq Required B Bal Sheet Required B Stmt Cash Flows Stmt Prepare the balance sheet for Sage Inc. for Year 1. (Be sure to list the assets in the order of their liquidity.) SAGE INC. Balance Sheet As of the End of the Year 1 Assets Total assets $ 0 Liabilities Total liabilities 0 Stockholders' equity 0 Total stockholders' equity Total liabilities and stockholders' equity $ 0 Complete this question by entering your answers in the tabs below. Required B Required B Inc Required B Bal Required B Stmt Stmt Cash Stmt Sheet Stkholder Eq Flows 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