The following transactions apply to Ozark Sales for Yeart 1. The business was started when the company received $49.000 from the issue of common stock 2. Purchased equipment inventory of $174,000 on account 3. Sold equipment for $198.500 cash (not including sales tax. Sales tax of 7 percent is collected when the merchandise is sold. The merchandise had a cost of $123.500 1. Provided a six-month warranty on the equipment sold. Based on industry estimates, the warranty claims would amount to 5 percent of sales. 3. Paid the sales tax to the state agency on $148,500 of the sales. on September 1, Year 1, borrowed $20,000 from the local bank. The note had a 6 percent interest rate and matured on March 1, Year 2 7. Paid $5,800 for warranty repairs during the year 3. Paid operating expenses of $53,000 for the year. Paid $125,200 of accounts payable 2. 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 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. Reo Inc Reo BB Resort Check my work Strnt Sheet Cash Flows 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 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 Balance Sheet Labilities Assets OZARK SALES Horizontal Statements Model Income Statement Stockholders' Equity Net Interest Notes Common Retained Revenue Expense- Income Payable Payable stock Earnings vent NO Stateme F Cash Merchandise Inventory Accounts Payable Sales Tax Payable Warranty Payable 1 2 3 30 . 5 6. 7 8. 9. 10 Reging Stml> OZARK SALES Balance Sheet As of December 31, Year 1 Assets Total assets Liabilities Total liabilities Stockholders' equity Total stockholders' equity Total liabilities and stockholders' equity WY Stmt NCY Sheet Cash Flows Prepare the statement of cash flows for Year 1. (Cash outflows should be indicated with a minus sign.) OZARK SALES Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flows from operating activities Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities Net cash flows from financing activities Net change in cash Ending cash balance