The following transactions apply to Ozark Sales for Year $1$:

The business was started when the company received $$49,000$ from the issue of common stock.

Purchased merchandise inventory of $$174,500$ on account.

Sold merchandise for $$197,500$ cash $($not including sales tax$).$ Sales tax of $6$ percent is collected when the merchandise is sold. The merchandise had a cost of $$122,500.$

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

Paid the sales tax to the state agency on $$147,500$ of the sales.

On September $1,$ Year $1,$ borrowed $$20,500$ from the local bank. The note had a $5$ percent interest rate and matured on March $1,$ Year $2.$

Paid $$5,700$ for warranty repairs during the year.

Paid operating expenses of $$53,000$ for the year.

Paid $$125,800$ of accounts payable.

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 $1.$

Complete this question by entering your answers in the tabs below.

$\backslash$table$[[$Req $C1,$Req C$2,$Req C$3,]]$