chapter 9 question 4

question 5 part D

Required information [The following information applies to the questions displayed below,] The following transactions apply to Ozark Sales for Year 1: 1. The business was started when the company recelved $48,500 from the issue of common stock. 2. Purchased merchandise inventory of $177,500 on account. 3. Sold merchandise for $196,500 cash (not including sales tax). Sales tax of 6 percent is collected when the merchandise is sold. The merchandise had a cost of $121,500. 4. Provided a six-month warranty on the merchandise sold. Based on industry estimates, the warranty ciaims would amount to 3 percent of sales. 5. Paid the sales tax to the state agency on $146,500 of the sales. 6. On September 1, Year 1, borrowed $22,000 from the local bank. The note had a 5 percent interest rate and matured on March 1, Year 2. 7. Paid $5,500 for warranty repairs during the year. 8. Paid operating expenses of $54,500 for the year. 9. Paid $125,500 of accounts payable. 10. Recorded accrued interest on the note issued in transaction number 6 . c-1. Prepare the income statement for Year 1. c-2. Prepare the balance sheet for Year 1. c-3. Prepare the statement of cash flows for Year 1. Prepare the income statement for Year 1. (Round your answers to the nearest dollar.) Prepare the balance sheet for Year 1. (Round your answers to Prepare the statement of cash flows for Year 1. (Round your ansu d. What is the total amount of current llabilities at December 31, Year 1? (Round your intermediate calculation to the nearest dollar.)