The following transactions apply to Ozark Sales for Year 1: 1. The business was started when the company received $49,500 from the issue of common stock. 2. Purchased equipment inventory of $177,000 on account. 3. Sold d equipment for $202,500 cash (not including sales tax). Sales tax of 7 percent is collected when the merchandise is sold. The merchandise had a cost of $127,500. 4. Provided a six-month warranty on the equipment sold. Based on industry estimates, the warranty claims would amount to 4 percent of sales. 5. Paid the sales tax to the state agency on $152,500 of the sales. 6. On September 1, Year 1, borrowed $20,000 from the local bank. The note had a 7 percent interest rate and matured on March 1, Year 2. 7. Paid $6,000 for warranty repairs during the year. 8. Paid operating expenses of $52,500 for the year. 9. Paid $124,200 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? Complete this question by entering your answers in the tabs below. Req A Req B Inc Stmt Req B Bal Sheet Req B Stmt Cash Flows Req C Record the given transactions in a horizontal statements model. (Enter any decreases to account balances and cash outflows with a minus sign. In the Cash Flow column, indicate whether the item is an operating activity (OA), an investing activity (IA), or a financing activity (FA), and leave the cell blank if there is no effect. Do not round intermediate calculations and round your answers to the nearest whole dollar amounts. Not all cells will require entry.) OZARK SALES Horizontal Statements Model Balance Sheet Income Statement Assets Event No. Cash Merchandise Inventory Accounts Sales Tax Payable Payable Liabilities Warranty Payable Stockholders' Equity Statement of Cash Interest Payable Notes Payable Common Stock Revenue Retained Earnings Expense Net Income Flows 1 49,500+ 0 = 0+ 0+ 0+ $ 49,500+ 0 0 0 = 0 49,500 FA 2. 0+ 3a + 177,000 = 01 = 177,000 + 0+ 0+ 0+ $ 0+ 0 + 0 0- 0= 0 0+ + + + - 0 127,500 OA 3b. = + + + + + + = 4 = + + + + = 5 = + + + + 6 = + + + + + 7. + = + + + + 8. + = + + + + +| + 9 + + +1 + 10 + Bal. 49,500 + 177,000 = 177,000 0+ 0+ 0+ 0 49,500 0 0 0 177,000 < Req A Req B Inc Stmt > Show less