The following transactions apply to Ozark Sales for Year 1:

1.The business was started when the company received $48,500 from the issue of common stock.

2.Purchased merchandise inventory of $175,000 on account.

3.Sold merchandise for $195,500 cash (not including sales tax). Sales tax of 7 percent is collected when the merchandise is sold. The merchandise had a cost of $120,500.

4.Provided a six-month warranty on the merchandise sold. Based on industry estimates, the warranty claims would amount to 5 percent of sales.

5.Paid the sales tax to the state agency on $145,500 of the sales.

6.On September 1, Year 1, borrowed $20,000 from the local bank. The note had a 6 percent interest rate and matured on March 1, Year 2.

7.Paid $5,600 for warranty repairs during the year.

8.Paid operating expenses of $54,000 for the year.

9.Paid $124,800 of accounts payable.

10.Recorded accrued interest on the note issued in transaction number 6.

c-1. Prepare the income statement for Year 1.

c-2. Prepare the balance sheet for Year 1.

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

Req c1 Req C2 Reg C3 Prepare the income statement for Year 1. (Round your answers to the nearest dollar.) OZARK SALES Income Statement For the Year Ended December 31, Year 1 Sales revenue 0 Expenses Total operating expenses 0 0 $ 0 Prepare the balance sheet for Year 1. (Round your answers to the nearest dollar.) OZARK SALES Balance Sheet As of December 31, Year 1 Assets Total assets $ 0 Liabilities Total liabilities 0 Stockholders' equity 0 Total stockholders' equity Total liabilities and stockholders' equity $ 0 Prepare the statement of cash flows for Year 1. (Round your answers to the nearest dollar. Enter cash outflows and amounts to be deducted with a minus sign.) OZARK SALES 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 flows from financing activities Net change in cash 0 Ending cash balance $ 0