Exercise $7-21$A $($Algo$)$ Current liabilities LO $7-1,7-2,7-4,7-10$

The following transactions apply to Ozark Sales for Year $1$:

The business was started when the company received $$49,000$ from the issue of common stock.

Purchased equipment inventory of $$176,500$ on account.

Sold equipment for $$204,500$ cash $($not including sales tax$).$ Sales tax of $7$ percent is collected when the merchandise is sold. The merchandise had a cost of $$129,500.$

Provided a six$-$month warranty on the equipment sold. Based on industry estimates, the warranty claims would amount to $5$ percent of sales.

Paid the sales tax to the state agency on $$154,500$ of the sales.

On September $1,$ Year $1,$ borrowed $$21,500$ from the local bank. The note had a $6$ percent interest rate and matured on March $1,$ Year $2.$

Paid $$5,400$ for warranty repairs during the year.

Paid operating expenses of $$55,500$ for the year.

Paid $$124,200$ of accounts payable.

Recorded accrued interest on the note issued in transaction no$.6.$

Required:

Use a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. More specifically, record the amounts of the events into the model. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities $($OA$),$ investing activities $($IA$),$ or financing activities $($FA$).$

Prepare the income statement, balance sheet, and statement of cash flows for Year $1.$

What is the total amount of current liabilities at December $31,$ Year $1?$