The following transactions apply to Ozark Sales for Year 1:

The business was started when the company received $48,000 from the issue of common stock.

Purchased equipment inventory of $176,500 on account.

Sold equipment for $196,500 cash (not including sales tax). Sales tax of 7 percent is collected when the merchandise is sold. The merchandise had a cost of $121,500.

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

Paid the sales tax to the state agency on $146,500 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 $5,600 for warranty repairs during the year.

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

Paid $124,700 of accounts payable.

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

Required

Record the given transactions in a horizontal statements model.

Prepare the income statement, balance sheet, and statement of cash flows for Year 1.

What is the total amount of current liabilities at December 31, Year 1?