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 $143,000 and sold them for $268,000 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 4 percent of sales. During the year, she paid $2,230 cash to replace a defective tuner. Required a-1. Prepare an income statement for Delochs first year of operation. a-2. Prepare a statement of cash flows for Delochs first year of operation.

They are also saying some of these questions are wrong -

Deloch stereos Statement of Cash Flows Cash flows from operating activities Inflow from customers selected answer correct $268,000 selected answer correct

Outflow for warranty expense selected answer correct

10,720selected answer incorrect Outflow to purchase inventory selected answer correct

2,230selected answer incorrect

not attempted not attempted Net cash flow from operating activities $280,950

Cash flows from investing activities (143,000)selected answer incorrect

Cash flows from financing activities not attempted Net change in cash 137,950 not attempted not attempted Ending cash balance $2,55,050 - (wrong answer)