To support herself while attending school, Daun Deloch sold stereo systems to other students. During the first year of operations, Daun purchased the stereo systems for $$140,000$ and sold them for $$250,000$ cash. She provided her customers with a one$-$year warranty against defects in parts and labor. Based on industry standards, she estimated that warranty claims would amount to $2$ percent of sales. During the year, she paid $$2,820$ cash to replace a defective tuner.

RequiredPrepare a statement of cash flows for Daun's first year of operation. $($Enter cash outflows and amounts to be deducted with a

minus sign.$)$

a$.$ Prepare a statement of cash flows for Daun$$s first year of operation.

b$.$ Based on the information given, what is Daun$$s total warranties liability at the end of the accounting period?