[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 $48,500 from the issue of common stock.

Purchased equipment inventory of $175,000 on account.

Sold equipment for $203,500 cash (not including sales tax). Sales tax of 8 percent is collected when the merchandise is sold. The merchandise had a cost of $128,500.

Provided a six-month warranty on the equipment sold. Based on industry estimates, the warranty claims would amount to 5 percent of sales.

Paid the sales tax to the state agency on $153,500 of the sales.

On September 1, Year 1, borrowed $20,500 from the local bank. The note had a 6 percent interest rate and matured on March 1, Year 2.

Paid $5,900 for warranty repairs during the year.

Paid operating expenses of $53,000 for the year.

Paid $126,000 of accounts payable.

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

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

Note: Round your answers to the nearest dollar amount.

b-2. Prepare the balance sheet for Year 1.

Note: Round your answers to the nearest dollar amount.

b-3. Prepare the statement of cash flows for Year 1.

Note: Enter amounts to be deducted and cash outflows with a minus sign. Round your answers to the nearest whole dollar.

c. What is the total amount of current liabilities at December 31, Year 1?

Note: Round your answer to the nearest dollar amount.