The following transactions apply to Ozark Sales for Year 1:

1. The business was started when the company received $50,000 from the issue of common stock.
2. Purchased equipment inventory of $174,500 on account.
3. Sold equipment for $209,500 cash (not including sales tax) Sales tax of 7 percent is collected when the merchandise is sold. The merchandise had a cost of $134,500.
4. Provided a six-month warranty on the equipment sold. Based on industry estimates, the warranty claims would amount to 3 percent of sales.
5. Paid the sales tax to the state agency on 5159,500 of the sales
6. On September 1, Year 1, borrowed $21,500 from the local bonk. The note had a 7 percent interest rate and matured on March 1, Year 2.
7. Paid $5,500 for warranty repairs during the year.
8. Paid operating expenses of $53,000 for the year.
9. Paid $124,800 of accounts payable.
10. Recorded accrued interest on the note issued in transaction no. 6

Prepare income statement for year 1

prepare balance sheet for year 1

prepare the statement of cash flows for year 1

Total current liabilities: