[The following information applies to the questions displayed below] The following transactions apply to Ozark Sales for Year 1: 1. The business was started when the company received $50,000 from the issue of common stock. 2. Purchased merchandise inventory of $380,000 on account. 3. Sold merchandise 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 merchandise 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. Paid 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 no. 6 c-1. Prepare the income statement for Year 1. c-2 Prepare the balance sheet for Year 1 e-3. Prepare the statement of cash flows for Year 1. \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{ OZARK SALES } \\ \hline \multicolumn{3}{|c|}{ Income Statement } \\ \hline \multicolumn{3}{|c|}{ For the Year Ended December 31, Year 1} \\ \hline Sales revenue & & $510,000 \\ \hline Cost of goods sold & & 330,000 \\ \hline Gross margin & & 180,000 \\ \hline \multicolumn{3}{|l|}{ Expenses } \\ \hline Operating expense & 78,000 & \\ \hline Warranty expense & 10,200 & \\ \hline E & & \\ \hline Total operating expenses & & 88,200 \\ \hline Operating income & & 91,800 \\ \hline & & \\ \hline Interest expense & & 667 \\ \hline Net income & & $91.133 \\ \hline \end{tabular} Balance Sheet As of December 31, Year 1 \begin{tabular}{|c|c|c|c|c|} \hline Assets & & & & \\ \hline Cash & & & $ & 284,600 \\ \hline Merchandise inventory & & & & 50,000 \\ \hline & & & 38 & \\ \hline Total assets & & & $ & 334,600 \\ \hline Liabilities & & & 38 & \\ \hline Sales tax payable & & & $ & 8,800 \\ \hline Warranties payable & & & & 4,000 \\ \hline Interest payable & & & & 667 \\ \hline Notes payable & & & & 50,000 \\ \hline Accounts payable & & & & 130,000 \\ \hline & & & & \\ \hline & & & & \\ \hline Total liabilities & & & & 193,467 \\ \hline Stockholders' equity & & & & \\ \hline Common stock & $ & 50,000 & & \\ \hline Dotainardoorninn & & 91133 & & \\ \hline \end{tabular} Statement of Cash Flows For the Year Ended December 31, Year 1