[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 $49,000 from the issue of common stock. 2. Purchased equipment inventory of $176,000 on account. 3. Sold equipment for $197,000 cash (not including sales tax). Sales tax of 6 percent is collected when the merchandise is sold. The merchandise had a cost of $122,000. 4. Provided a six-month warranty on the equipment sold. Based on industry estimates, the warranty claims would amount to 5 percent of sales. 5. Paid the sales tax to the state agency on $147,000 of the sales. 6. On September 1, Year 1, borrowed $21,000 from the local bank. The note had a 6 percent interest rate and matured on March 1, Year 2. 7. Paid $5,800 for warranty repairs during the year. 8. Paid operating expenses of $56,000 for the year. 9. Paid $124,100 of accounts payable. 10. Recorded accrued interest on the note issued in transaction no. 6. Exercise 9-8A (Algo) Part b b-1. Prepare the income statement for Year 1. Note: Round your answers to the nearest dollar amount. Sales revenue Cost of goods sold Gross margin Expenses Operating expenses Warranty expense Total expenses OZARK SALES Income Statement For the Year Ended December 31, Year 1 $ 197,000 122,000 75,000 56,000 56,000 19,000 $ 19,000