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Exercise $9-8A(Algo)$ Current liabilities $LO9-1,9-2,9-4$

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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 $of$ $$175,500on$ account.

Sold equipment for $$195,500$ cash $(not$ including sales tax$).$ Sales tax $of7$ percent $is$ collected when the merchandise $is$ sold. The merchandise had a cost $of$ $$120,500.$

Provided a six$-$month warranty $on$ the equipment sold. Based $on$ industry estimates, the warranty claims would amount $to4$ percent $of$ sales.

Paid the sales tax $to$ the state agency $on$ $$145,500of$ the sales.

$On$ September $1,$ Year $1,$ borrowed $$21,000$ from the local bank. The note had $a6$ percent interest rate and matured $on$ March $1,$ Year $2.$

Paid $$5,800$ for warranty repairs during the year.

Paid operating expenses $of$ $$54,000$ for the year.

Paid $$124,400of$ accounts payable.

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

Exercise $9-8A(Algo)$ Part $b$

$b-1.$ Prepare the income statement for Year $1.$

Note: Round your answers $to$ the nearest dollar amount.

$b-2.$ Prepare the balance sheet for Year $1.$

Note: Round your answers $to$ the nearest dollar amount.

$b-3.$ Prepare the statement $of$ cash flows for Year $1.$

Note: Enter amounts $tobe$ deducted and cash outflows with a minus sign. Round your answers $to$ the nearest whole dollar.

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