The following transactions apply to Ozark Sales for Year 1:

The business was started when the company received $48,000 from the issue of common stock.

Purchased equipment inventory of $176,000 on account.

Sold equipment for $210,000 cash (not including sales tax). Sales tax of 7 percent is collected when the merchandise is sold. The merchandise had a cost of $135,000.

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 $160,000 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 $5,600 for warranty repairs during the year.

Paid operating expenses of $55,000 for the year.

Paid $125,600 of accounts payable.

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

a. Show the effects of these transactions on the financial statements using a horizontal statements model. (Use a + to indicate increase or a for decrease. In the Statement of Cash Flows column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). Columns for events that have no effect on any of the elements should be left blank.)

Note: Not all cells will require an input.

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.

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

c. What is the total amount of current liabilities at December 31, Year 1? Note: Round your answer to the nearest dollar amount.

Please answer this question. Thanks

\begin{tabular}{|l|r|r|} \hline \multicolumn{2}{|c|}{ OZARK SALEs } & \\ \multicolumn{2}{|c|}{ Income Statement } & \\ \hline \multicolumn{2}{|c|}{ For the Year Ended December 31, Year 1 } & \\ \hline Sales revenue & & $10,000 \\ \hline Cost of goods sold & & 135,000 \\ \hline Gross margin & & 75,000 \\ \hline Expenses & 55,000 & \\ \hline Operating expenses & 5,600 & \\ \hline Warranty expense & 8,240 & \\ \hline Warranty payable & & \\ \hline Total expenses & & 68,840 \\ \hline Operating income & & 6,160 \\ \hline Interest expense & & \\ \hline & & $,160 \\ \hline Net income & & \\ \hline \end{tabular} OZARK SALES Balance Sheet As of December 31, Year 1 Assets \begin{tabular}{l} Accounts payable \\ Accounts receivable \\ Allowance for doubtful accounts \\ Total assets \\ \hline Liabilities \\ \hline \\ \hline \end{tabular} OZARK SALES Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flows from operating activities: c. What is the total amount of current liabilities at December 31 , Year 1 ? Note: Round your answer to the nearest dollar amount