Save tut Submit Check my work The following transactions apply to Ozark Sales for Year 1 bok nt 1. The business was started when the company received $50,000 from the issue of common stock 2. Purchased equipment inventory of $380,000 on account 3. Sold equipment for $510,000 cash (not including sales tax). Sales tax of 8 percent is collected when the merchandise is sold. The merchandise had a cost of $330,000 4. Provided a six-month warranty on the equipment sold. Based on industry estimates, the warranty claims would amount to 2 percent of sales. 5. Paid the sales tax to the state agency on $400,000 of the sales. 6. On September 1, Year 1, borrowed $50,000 from the local bank. The note had a 4 percent interest rate and matured on March 1, Year 2 7. Paid $6,200 for warranty repairs during the year. 8. Pald operating expenses of $78,000 for the year. 9. Paid $250,000 of accounts payable. 10. Recorded accrued interest on the note issued in transaction to 6. nt ances Required a. Record the given transactions in a horizontal statements model b. Prepare the income statement, balance sheet, and statement of cash flows for Year 1 c. What is the total amount of current liabilities at December 31, Year 12 Complete this question by entering your answers in the tabs below. Reg B Inc Reg B Bal Reg B Stmt Red C Red A Prey 1 of 1 !!! Next > Check my work Reg A Req B Inc Stmt Reg B Bal Sheet Reg B Strmt Cash Flows Regc Record the given transactions in a horizontal statements model. (Enter any decreases to account balances and cash outflows with a minus sign. In the Cash Flow column 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 or amounts ek Event No. OZARK SALES Horizontal Statement Model Income Statement Stockholders' Equity Net Interest Notes Common Retained Revenue Expense Income Payabio Payable Stock Earning Balance Sheet Liabilities Sales Tax Warranty Payable Payable Assets Merchandise Inventory Statem Cash Accounts Payable - 1 2 3a 3b 4. 5 6. 7 ces + 8 9 O 0 10 Bal 0 O. 0 Regine St> it Sheet Reg St Cash Flows Regc 5 points sactions in a horizontal statements model (Enter any decreases to account balances and cash outhout was in the show, incate whether the te A), and leave the cell blank if there is no effect. Do not round intermediate calculations and round yours to the east we doar mottatt allt OZARK SALES Horizontal Statement Model elok bocament Balance Sheet Liabilities Sales Tax Warranty Payable Payable Satural Cash Hint archandise Inventory Accounts Payable interest Payable Notes Payable Stockholders' Equity Common Stock Eaminas Retained Revenue Expense Net Income Print o References + . + O. 0 0 Regine > Stmt Sheet Cash Flows Prepare the balance sheet for Year 1. (Round your answers to the nearest whole dollar) OZARK SALES Balance Sheet As of December 31, Year 1 Assets Cash 348,600 50,000 Merchandise inventory Total assets $ 398,600 $ 130,000 Liabilities Accounts payable Sales tax payable Warranties payable Cash Interest payable 8,800 4,000 50,000 667 $ 193,467 Total liabilities Stockholder's equity Common stock Retained earnings $ 50,000 91,133 Total stockholders' equity Total liabilities and stockholders' equity $ $ 141,133 334,600 Prev 1 of 1 Next Reg A Reg B Inc Stmt Req B Bal Sheet Req B Stmt Cash Flows ReqC Prepare the statement of cash flows for Year 1. (Lash outflows should be indicated w OZARK SALES Statement of Cash Flows For the Year Ended December 31, 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 Prey HE Reg A Req B Inc Stmt Req B Bal Sheet Req B Stmt Cash Flows ReqC Prepare the income statement for Year 1. (Round your answers to the near OZARK SALES Income Statement For the Year Ended December 31, Year 1 Sales revenue $ 510,000 Cost of goods sold 330,000 Gross margin 180,000 Expenses Warranty expenses $ 10,200 Operating expenses 78,000 + Total operating expenses Operating income Interest expense 88,200 91,800 667 Net income $ 91,133