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 $310,000 and sold them for $420,000 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 $4,520 cash to replace a defective tuner. Required Prepare an income statement and statement of cash flows for Daun's first year of operation. Note: Statement of Cash Flows only: Amounts to be deducted and cash outflows should be indicated with a minus sign. What is Daun's total warranties liability at the end of the accounting period