Required information Exercise 9-8A (Algo) Current liabilities LO 9-1, 9-2, 9-4 [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 received $48,000 from the issue of common stock. 2. Purchased equipment inventory of $177,000 on account. 3. Sold equipment for $192,500 cash (not including sales tax). Sales tax of 6 percent is collected when the merchandise is sold. The merchandise had a cost of $117,500. 4. Provided a six-month warranty on the equipment sold. Based on industry estimates, the warranty claims would amount to 3 percent of sales. 5. Paid the sales tax to the state agency on $142.500 of the sales. 6. On September 1, Year 1, borrowed $22,000 from the local bank. The note had a 7 percent interest rate and matured on March 1, Year 2 7. Paid $5,700 for warranty repairs during the year. 8. Paid operating expenses of $54,500 for the year, 9. Paid $125,700 of accounts payable. 10. 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. Exercise 9-8A (Algo) Part b b-1. Prepare the income statement for Year 1. Note: Round your answers to the nearest dollar amount. Answer is complete and correct. OZARK SALES Income Statement For the Year Ended December 31, Year 1 Sales revenue Cost of goods sold Gross margin Expenses Warranty expense 5,775 Operating expenses 54,500 Total expenses Operating income Interest expense Net income $ 192,500 117,500 75,000 60,275 14,725 513 $ 14,212 b-2. Prepare the balance sheet for Year 1. Note: Round your answers to the nearest dollar amount. Answer is not complete. OZARK SALES Balance Sheet As of December 31, Year 1 Assets Cash Merchandise inventory Total assets Liabilities Interest payable Accounts payable Notes payable Warranty payable Sales tax payable $ 0 Required information Answer is not complete. OZARK SALES Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flows from operating activities: Inflow from customers Inflow from sales tax Outflow for expenses Outflow for sales tax Outflow to purchase inventory Net cash flows from operating activities Cash flows from investing activities. Cash flows from financing activities Inflow from loan Inflow from stock issue Net cash flows from financing activities Not channo in rach 192,500 (60,200) (125,700) 22,000 48,000 S 6,600 70,000 76 600 Required information For the Year Ended December 31, Year 1 Cash flows from operating activities: Inflow from customers 192,500 Inflow from sales tax Outflow for expenses (60,200) Outflow for sales tax Outflow to purchase inventory (125,700) Net cash flows from operating activities Cash flows from investing activities: Cash flows from financing activities Inflow from loan Inflow from stock issue $ 6,600 22,000 48,000 Net cash flows from financing activities 70,000 Net change in cash 76,600 Plus: Beginning cash balance Ending cash balance $ 76,600 Required information Exercise 9-8A (Algo) Current liabilities LO 9-1, 9-2, 9-4 [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 received $48.000 from the issue of common stock. 2. Purchased equipment inventory of $177,000 on account. 3. Sold equipment for $192.500 cash (not including sales tax). Sales tax of 6 percent is collected when the merchandise is sold. The merchandise had a cost of $117,500. 4. Provided a six-month warranty on the equipment sold. Based on industry estimates, the warranty claims would amount to 3 percent of sales. 5. Paid the sales tax to the state agency on $142.500 of the sales. 6. On September 1, Year 1, borrowed $22,000 from the local bank. The note had a 7 percent interest rate and matured on March 1, Year 2 7. Paid $5,700 for warranty repairs during the year. 8. Paid operating expenses of $54,500 for the year. 9. Paid $125,700 of accounts payable. 10. Recorded accrued interest on the note issued in transaction no. 6. Exercise 9-8A (Algo) Part c c. What is the total amount of current liabilities at December 31, Year 1? Note: Round your answer to the nearest dollar amount. Total current liabilities