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 $380,000 on account. 3. Sold equipment for $510,000 cash (not including sales tax). Sales tax of 8 percent is collected when the merchandise is sold. The merchandise had a cost of $330,000. 4. Provided a six-month warranty on the equipment sold. Based on industry estimates, the warranty claims would amount to 2 percent of sales. 5. Paid the sales tax to the state agency on $400,000 of the sales. 6. On September 1, Year 1, borrowed $50,000 from the local bank. The note had a 4 percent interest rate and matured on March 1. Year 2 7. Paid $6,200 for warranty repairs during the year. 8. Paid operating expenses of $78,000 for the year. 9. Paid $250,000 of accounts payable. 10. Recorded accrued interest on the note issued in transaction no. 6. Required a. Record the given transactions in a horizontal statements model. b. Prepare the income statement, balance sheet, and statement of cash flows for Year 1. c. What is the total amount of current liabilities at December 31, Year 1? Event No. OZARK SALES Horizontal Statements Model Balance Sheet Income Statement Assets Liabilities Merchandise Inventory Accounta Payable Sales Tax Payable Warranty Payable Interest Payable Notes Payable Common Stack Stockholders' Equity Retained Revenue Earnings Expense Net Income Statement of Cash Flows Cash 1. 2. 3a. 3b. 4. + 5. + 6. + 7. + 8. + 9. 10. Bal. + Req B Inc Stmt > Expenses OZARK SALES Income Statement For the Year Ended December 31, Year 1 Total operating expenses Roq A Req B Bal Sheet > Assets OZARK SALES Balance Sheet As of December 31, Year 1 Total asset Liabilities Total liabilities Stockholder's equity Total stockholders' equity Total liabilities and stockholders' equity OZARK SALES Statement of Cash Flows For the Year Ended December 31. Year i Cash flows from operating activities. Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities: Net cash flows from financing activities Net change in cash Ending cash balance What is the total amount of current liabilities at December Toual current liabilities < Req B Stmt Cash Flows