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.

$\backslash$table$[[$DAUN$\text{'}$S STEREOS$],[$Income Statement,$],[,],[,],[,],[,],[,]]$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.

$\backslash$table$[[$DAUN$\text{'}$S STEREOS$],[$Income Statement,$],[,],[,],[,],[,],[,]]$