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

The business was started when the company received $$49,500$ from the issue of common stock.

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

Sold equipment for $$195,000$ cash $($not including sales tax$).$ Sales tax of $7$ percent is collected when the merchandise is sold. The merchandise had a cost of $$120,000.$

Provided a six$-$month warranty on the equipment sold. Based on industry estimates, the warranty claims would amount to $3$ percent of sales.

Paid the sales tax to the state agency on $$145,000$ 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 $$5,500$ for warranty repairs during the year.

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

Paid $$124,900$ of accounts payable.

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

Balance Sheet

b$-1.$ Prepare the income statement for Year $1.$

Note: Round your answers to the nearest dollar amount.

thank you!!