The following transactions apply to Ozark Sales for Year 1:

The business was started when the company received $49,500 from the issue of common stock.

Purchased equipment inventory of $175,000 on account.

Sold equipment for $194,000 cash (not including sales tax). Sales tax of 6 percent is collected when the merchandise is sold. The merchandise had a cost of $119,000.

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 $144,000 of the sales.

On September 1, Year 1, borrowed $19,500 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 $54,500 for the year.

Paid $125,900 of accounts payable.

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

Required

Record the given transactions in a horizontal statements model.

Prepare the income statement, balance sheet, and statement of cash flows for Year 1.

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