The following transactions apply to Ozark Sales for Year 1: 1. The business was started when the company received $50,000 from the issue of common stock 2. Purchased equipment inventory of $380,000 on account. 3. Sold equipment for $510,000 cash (not including sales tox). Sales tax of 8 percent is collected when the merchandise is sold. The merchandise had a cost of $330,000 4. Provided a six-month warranty on the equipment sold. Based on industry estimates, the warranty claims would amount to 2 percent of sales. 5. Paid the sales tax to the state agency on $400,000 of the sales. 6. On September 1, Year 1, borrowed $50,000 from the local bank. The note had a 4 percent interest rate and matured on March 1, Year 2 7. Paid $6,200 for warranty repairs during the year. 8. Paid operating expenses of $78,000 for the year. 9. Paid $250,000 of accounts payable 10. Recorded accrued interest on the note issued in transaction no. 6. Required a. Record the given transactions in a horizontal statements model. b. Prepare the income statement, balance sheet, and statement of cash flows for Year 1 c. What is the total amount of current liabilities at December 31, Year 1? scord the given transactions in a horizontal statements model. (Enter any decreases to account balances and cash outflows with a minus sign in the Cash Flow column. Indit financing activity (FA), and leave the cell blank if there is no effect. Do not round intermediate calculations and round your answers to the nearest whole dollar amounts. Not OZARK SALES Horizontal Statements Model Income Statement Stockholders' Equity Net Interest Notes Common Retained Revenue - Expense Income Payable Payable Stock Earnings ont 0 Balance Sheet Liabilities Sales Tax Warranty Payable Payable Assets Merchandise Inventory Statement Flow Cash Accounts Payable 1 2 5 3 - 0 o 0 0. 0. 01. 0. 0 0 0 0 o OZARK SALES Income Statement For the Year Ended December 31, Year 1 Expenses Total operating expenses 0 Prepare the balance sheet for Year 1. (Round your answers to the nearest whole dollar.) OZARK SALES Balance Sheet As of December 31, Year 1 Assets $ Total assets Liabilities 0 Total liabilities Stockholder's equity $ 0 Total stockholders' equity Total liabilities and stockholders' equity $ 0 $ $ 0 Prepare the statement of cash flows for Year 1. (Cash outflows should be indicated with a minus sign.) OZARK SALES Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flows from operating activities: $ 0 Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities: 0 Net cash flows from financing activities Net change in cash 0 Ending cash balance 0 Stmt Sheet Cash Flows What is the total amount of current liabilities at December 31, Year 17 (Round your answer to the nearest whole dollar) Total current liabilities