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p-3. Prepare the statement of cash flows for Year 1. (Amounts to be deducted and losses Round your answers to the nearest dollar amount.) OZARK SALES Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flow from operating activities:

p-3. Prepare the statement of cash flows for Year 1. (Amounts to be deducted and losses Round your answers to the nearest dollar amount.) OZARK SALES Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flow from operating activities:

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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**Statement of Cash Flows: Ozark Sales** For the Year Ended December 31, Year 1 --- **Cash Flow from Operating Activities:** - [Several lines for itemized entries] Net Cash Flow from Operating Activities: $0 **Cash Flows from Investing Activities:** - [Lines for itemized entries] **Cash Flows from Financing Activities:** - [Several lines for itemized entries] Net Cash Flow from Financing Activities: $0 **Net Change in Cash:** $0 **Ending Cash Balance:** $0 --- *Note: Amounts to be deducted and losses should be indicated with a minus sign. Round your answers to the nearest dollar amount.*
Transcribed Image Text:**Statement of Cash Flows: Ozark Sales** For the Year Ended December 31, Year 1 --- **Cash Flow from Operating Activities:** - [Several lines for itemized entries] Net Cash Flow from Operating Activities: $0 **Cash Flows from Investing Activities:** - [Lines for itemized entries] **Cash Flows from Financing Activities:** - [Several lines for itemized entries] Net Cash Flow from Financing Activities: $0 **Net Change in Cash:** $0 **Ending Cash Balance:** $0 --- *Note: Amounts to be deducted and losses should be indicated with a minus sign. Round your answers to the nearest dollar amount.*
### Required Information **The following transactions apply to Ozark Sales for Year 1:** 1. The business was started when the company received $50,000 from the issuance of common stock. 2. Purchased equipment inventory of $174,500 on account. 3. Sold equipment for $203,000 cash (not including sales tax). A sales tax of 7 percent is collected when the merchandise is sold. The merchandise had a cost of $128,000. 4. Provided a six-month warranty on the equipment sold. Based on industry estimates, the warranty claims would amount to 4 percent of sales. 5. Paid the sales tax to the state agency on $153,000 of the sales. 6. On September 1, Year 1, borrowed $20,500 from the local bank. The note had a 6 percent interest rate and matured on March 1, Year 2. 7. Paid $5,600 for warranty repairs during the year. 8. Paid operating expenses of $55,000 for the year. 9. Paid $124,200 of accounts payable. 10. Recorded accrued interest on the note issued in transaction no. 6.
Transcribed Image Text:### Required Information **The following transactions apply to Ozark Sales for Year 1:** 1. The business was started when the company received $50,000 from the issuance of common stock. 2. Purchased equipment inventory of $174,500 on account. 3. Sold equipment for $203,000 cash (not including sales tax). A sales tax of 7 percent is collected when the merchandise is sold. The merchandise had a cost of $128,000. 4. Provided a six-month warranty on the equipment sold. Based on industry estimates, the warranty claims would amount to 4 percent of sales. 5. Paid the sales tax to the state agency on $153,000 of the sales. 6. On September 1, Year 1, borrowed $20,500 from the local bank. The note had a 6 percent interest rate and matured on March 1, Year 2. 7. Paid $5,600 for warranty repairs during the year. 8. Paid operating expenses of $55,000 for the year. 9. Paid $124,200 of accounts payable. 10. Recorded accrued interest on the note issued in transaction no. 6.
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