The following transactions apply to Ozark Sales for 2018: The business was started when the company received $49,500 from the issue of common stock. Purchased equipment inventory of $175,500 on account. Sold equipment for $190,500 cash (not including sales tax). Sales tax of 7 percent is collected when the merchandise is sold. The merchandise had a cost of $115,500. Provided a six-month warranty on the equipment sold. Based on industry estimates, the warranty claims would amount to 4 percent of sales. Paid the sales tax to the state agency on $140,500 of the sales. On September 1, 2018, borrowed $19,500 from the local bank. The note had a 7 percent interest rate and matured on March 1, 2019. Paid $5,800 for warranty repairs during the year. Paid operating expenses of $52,500 for the year. Paid $125,900 of accounts payable. Recorded accrued interest on the note issued in transaction no. 6.

a) Record the given transactions in a horizontal statements model like the following one. (Enter any decreases to account balances and cash outflows with a minus sign. In the Cash Flow column, indicate whether the item is an operating activity (OA), an investing activity (IA), or a financing activity (FA), and leave the cell blank if there is no effect. Do not round intermediate calculations and round your answers to the nearest whole dollar amounts.)

b) Prepare the income statement, balance sheet, and statement of cash flows for 2018.

c) What is the total amount of current liabilities at December 31, 2018?

Required a. Record the given transactions in a horizontal statements model like the following one. (Enter any decreases to account balances and cash outflows with a minus sign. In the Cash Flow column, indicate whether the item is an operating activity (OA), an investing activity (IA), or a financing activity (FA), and leave the cell blank if there is no effect. Do not round intermediate calculations and round your answers to the nearest whole dollar amounts.) OZARK Horizontal Statements Model Income Statement Balance Sheet Stockholders' Equity Assets Liabilities + Event No. Statement of Cash Net Income Retained Revenue Earnings Flows Expense Merchandise Inventory Accounts Sales Tax Warranty Payable Interest Notes Common Stock Cash ++ Payable Payable Payable Payable 1. 49,500 49,500 + + 2 175,500 175,500 + . + + . 4 + + 5 6 7 8 + = 9 + 10 + 49.500 49.500 0= Bal. 175,500 175,500 0 0 0 0 0 0+ b. Prepare the income statement, balance sheet, and statement of cash flows for 2018 Complete this question by entering your answers in the tabs below. Req B Bal Sheet Req B Stmt Cash Flows Req B Inc Stmt Prepare the income statement for 2018. (Do not round intermediate calculations and round your answers to the nearest whole dollar amount.) OZARK SALES Income Statement For the Year Ended December 31, 2018 Expenses Total operating expenses 0 OZARK SALES Balance Sheet As of December 31, 2018 Assets 0 Total assets Liabilities Total liabilities 0 Stockholders' equity Total stockholders' equity $ Total liabilities and stockholders' equity Req B Inc Stmt Req B Bal Sheet Req B Stmt Cash Flows Prepare the statement of cash flows for 2018. (Do not round int whole dollar amount. Amounts to be deducted should be indicate OZARK SALES Statement of Cash Flows For the Year Ended December 31, 2018 Cash flows from operating activities Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities $ 0 Net cash flows from financing activities Net change in cash 0 0 Ending cash balance $ 0 c. What is the total amount of current liabilities at December 31, 2018 (Do not round intermediate calculations and round your answer to the nearest whole dollar amount.) Total current liabilities