To support herself while attending school, Daun Deloch sold stereo systems to other students. During the first year of operations,

Deloch purchased the stereo systems for $$161,000$ and sold them for $$302,000$ 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 $6$

percent of sales. During the year, she paid $$1,910$ cash to replace a defective tuner.

Required:

a$-1.$ Prepare an income statement for Deloch's first year of operation.

a$-2.$ Prepare a statement of cash flows for Deloch's first year of operation.

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Prepare an income statement for Deloch's first year of operation.