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 $177,000 on account.
3. Sold equipment for $208,500 cash (not including sales tax). Sales tax of 7 percent is collected when the merchandise is sold. The merchandise had a cost of $133,500.
4. Provided a six-month warranty on the equipment 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 $158,500 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 $5,900 for warranty repairs during the year.
8. Paid operating expenses of $56,000 for the year.
9. Paid $124,900 of accounts payable.
10. Recorded accrued interest on the note issued in transaction no. 6.

Required

1. Record the given transactions in a horizontal statements model.
2. Prepare the income statement, balance sheet, and statement of cash flows for Year 1.
3. What is the total amount of current liabilities at December 31, Year 1?

\begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{24}{|c|}{ OZARK SALES } \\ \hline \multicolumn{24}{|c|}{ Horizontal Statements Model } \\ \hline \multirow{3}{*}{\begin{tabular}{l} Event \\ No. \end{tabular}} & \multicolumn{17}{|c|}{ Balance Sheet } & \multicolumn{5}{|c|}{ Income Statement } & \multirow{3}{*}{\begin{tabular}{c} Statement of Cash \\ Flows \end{tabular}} \\ \hline & \multicolumn{3}{|c|}{ Assets } & \multirow[b]{2}{*}{=} & \multicolumn{9}{|c|}{ Liabilities } & \multicolumn{4}{|c|}{ + Stockholders' Equity } & \multirow[b]{2}{*}{ Revenue } & \multirow[b]{2}{*}{ - } & \multirow[b]{2}{*}{ Expense } & \multirow{2}{*}{\multicolumn{2}{|c|}{=\begin{tabular}{c} Net \\ Income \end{tabular}}} & \\ \hline & Cash & + & \begin{tabular}{l} Merchandise \\ Inventory \end{tabular} & & \begin{tabular}{c} Accounts \\ Payable \end{tabular} & + & \begin{tabular}{c} Sales Tax \\ Payable \end{tabular} & + & \begin{tabular}{l} Warranty \\ Payable \end{tabular} & + & \begin{tabular}{l} Interest \\ Payable \end{tabular} & + & \begin{tabular}{l} Notes \\ Payable \end{tabular} & + & \begin{tabular}{c} Common \\ Stock \end{tabular} & + & \begin{tabular}{l} Retained \\ Earnings \end{tabular} & & & & & & \\ \hline 1. & & + & & = & & + & & + & & + & & + & & + & & + & & & - & & = & & \\ \hline 2. & & + & & = & & + & & + & & + & & + & & + & & + & & & - & & = & & \\ \hline 3a. & & + & & = & & + & & + & & + & & + & & + & & + & & & - & & = & & \\ \hline 3b. & & + & & = & & + & & + & & + & & + & & + & & + & & & - & & = & & \\ \hline 4. & & + & & = & & + & & + & & + & & + & & + & & + & & & - & & = & & \\ \hline 5. & & + & & = & & + & & + & & + & & + & & + & & + & & & - & & = & & \\ \hline 6. & & + & & = & & + & & + & & + & & + & & + & & + & & & - & & = & & \\ \hline 7. & & + & & = & & + & & + & & + & & + & & + & & + & & & - & & = & & \\ \hline 8. & & + & & = & & + & & + & & + & & + & & + & & + & & & - & & = & & \\ \hline 9. & & + & & = & & + & & + & & + & & + & & + & & + & & & - & & = & & \\ \hline 10. & & + & & = & & + & & + & & + & & + & & + & & + & & & - & & = & & \\ \hline Bal. & & + & & = & & + & & + & & + & & + & & + & & + & & & - & & = & & \\ \hline \end{tabular} Prepare the income statement for Year 1. (Round your answers to the nearest whole dollar.) Prepare the balance sheet for Year 1. (Round your answers to the neare Prepare the statement of cash flows for Year 1. (Cash outflows should be indicated with a Complete this question by entering your answers in the tabs below. What is the total amount of current liabilities at December 31, Year 1? (Round your answ