[The following information applies to the questions displayed below.] The following transactions apply to Park Company for Year 1: 1. Received $32,000 cash from the issue of common stock. 2. Purchased inventory on account for $142,000. 3. Sold inventory for $173,500 cash that had cost $106.500. Sales tax was collected at the rate of 6 percent on the inventory sold. 4. Borrowed $16,800 from First State Bank on March 1, Year 1. The note had a 6 percent Interest rate and a one-year term to maturity 5. Paid the accounts payable (see transaction 2). 6. Paid the sales tax due on $152.500 of sales. Sales tax on the other $21,000 is not due until after the end of the year. 7. Salaries for the year for one employee amounted to $28,000. Assume the Social Security tax rate is 6 percent and the Medicare tax rate is 1.5 percent. Federal income tax withheld was $5,400. 8. Paid $2,500 for warranty repairs during the year. 9. Pald $11,500 of other operating expenses during the year. 10. Paid a dividend of $5,200 to the shareholders. Adjustments: 11. The products sold in transaction 3 were warranted. Park estimated that the warranty cost would be 5 percent of sales. 12. Record the accrued interest at December 31, Year 1. 13. Record the accrued payroll tax at December 31, Year 1. Assume no payroll taxes have been paid for the year and that the unemployment tax rate is 6.0 percent (federal unemployment tax rate is 0.60 percent and the state unemployment tax rate is 5.40 percent on the first $7,000 of earnings per employee). C-1. Prepare an Income statement for Year 1. c-2. Prepare a statement of changes in stockholders' equity for Year 1. c-3. Prepare a balance sheet for Year 1. c-4. Prepare a statement of cash flows for Year 1. Complete this question by entering your answers in the tabs below. Req C1 Req C2 Req C3 Reg C4 Prepare an income statement for Year 1. PARK COMPANY Income Statement For the Year Ended December 31, Year 1 0 Expenses Total operating expenses D 0 $ 0 C-1. Prepare an income statement for Year 1. c-2. Prepare a statement of changes in stockholders' equity for Year 1. c-3. Prepare a balance sheet for Year 1. C-4. Prepare a statement of cash flows for Year 1. Complete this question by entering your answers in the tabs below. Req C1 Req C2 Req C3 Req C4 Prepare a statement of changes in stockholders' equity for Year 1. (Enter amounts to be deducted with a minus sign.) PARK COMPANY Statement of Changes in Stockholders' Equity For the Year Ended December 31, Year 1 $ 0 0 Total stockholders' equity $ 0 Complete this question by entering your answers in the tabs below. Req C1 Reg C2 Req C3 Req C4 Prepare a balance sheet for Year 1. PARK COMPANY Balance Sheet As of December 31, Year 1 Assets Total assets $ 0 Liabilities $ 0 Total liabilities Stockholders' Equity 0 Total Stockholders' equity Total liabilities and stockholders' equity $ 0 Complete this question by entering your answers in the tabs below. Req C1 Req C2 Reg C3 Req C4 Prepare a statement of cash flows for Year 1. (Enter cash outflows and amounts to be deducted with a minus sign.) PARK COMPANY 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 flow from financing activities Net change in cash 0 Ending cash balance $ 0