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So I am not sure how to find the interest expence, so If some one could help explain how to do it on here. I also need a Statement of cash flow and I am not able to get a second photo on here, but I keep getting the outflow to purchase, outflow for sales tax and Outflow for expenses wrong. I got everything else correct. I am not sure what I am doing wrong with that either. Can someone explain please?

Requlred Information

Exercise $9\mathrm{.}8$A $($Algo$)$ Current liabilities LO $9-1,9\mathrm{.}2,9\mathrm{.}4$

$[$The following information applies to the questions displayed below.$]$

The following transactions apply to Ozark Sales for Year $1$:

The business was started when the company received $$49,000$ from the issue of common stock.

Purchased equipment inventory of $$175,000$ on account.

Sold equipment for $$201,500$ cash $($not including sales tax$).$ Sales tax of $7$ percent is collected when the merchandise is

sold. The merchandise had a cost of $$126,500.$

Provided a six$-$month warranty on the equipment sold. Based on industry estimates, the warranty claims would amount

to $3$ percent of sales.

Paid the sales tax to the state agency on $$151,500$ of the sales.

On September $1,$ Year $1,$ borrowed $$20,500$ from the local bank. The note had a $7$ percent interest rate and matured on

March $1,$ Year $2.$

Paid $$5,500$ for warranty repairs during the year.

Paid operating expenses of $$52,500$ for the year.

Paid $$125,800$ of accounts payable.

Recorded accrued interest on the note issued in transaction no$.6.$

Exerclse $9-8$A $($Algo$)$ Part b

b$-1.$ Prepare the income statement for Year $1.$

Note: Round your answers to the nearest dollar amount.