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.

Part $3$ of $4$

$4\mathrm{.}28$ points

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$2.$ Purchased merchandise inventory of $$177,000$ on account.

$3.$ Sold merchandise for $$193,500$ cash $($not including sales tax$).$ Sales tax of $7$ percent is collected when the merchandise is sold. The merchandise had a cost of $$118,500.$

$4.$ Provided a six$-$month warranty on the merchandise sold. Based on industry estimates, the warranty claims would amount to $3$ percent of sales.

$5.$ Paid the sales tax to the state agency on $$143,500$ of the sales.

$6.$ On September $1,$ Year $1,$ borrowed $$19,500$ from the local bank. The note had a $6$ percent interest rate and matured on March $1,$ Year $2.$

$7.$ Paid $$5,700$ for warranty repairs during the year.

$8.$ Paid operating expenses of $$53,500$ for the year.

$9.$ Paid $$124,700$ of accounts payable.

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

Exercise $9-8$A $($Algo$)$ Part c

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.

Req C$1$

Req C$2$

Prepare the income statement for Year $1.($Round your answers to the nearest dollar.$)$

OZARK SALES