The following transactions apply to Ozark Sales for Year 1: The business was started when the company received $48,000 from the issue of common stock.Purchased equipment inventory of $175,500 on account.Sold equipment for $193,500 cash (not including sales tax). Sales tax of 8 percent is collected when the merchandise is sold. The merchandise had a cost of $118,500.Provided a six-month warranty on the equipment sold. Based on industry estimates, the warranty claims would amount to 4 percent of sales.Paid the sales tax to the state agency on $143,500 of the sales.On September 1, Year 1, borrowed $20,000 from the local bank. The note had a 5 percent interest rate and matured on March 1, Year 2.Paid $5,500 for warranty repairs during the year.Paid operating expenses of $54,000 for the year.Paid $124,400 of accounts payable.Recorded accrued interest on the note issued in transaction no. 6. RequiredPrepare 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? Req B BalSheetReq B StmtCash FlowsPrepare the balance sheet for Year 1. (Round your answers to the nearest whole dollar.)Req AAssetsReq B IncStmtTotal assetsLiabilitiesTotal liabilitiesStockholders' equityOZARK SALESBalance SheetAs of December 31, Year 1Total stockholders' equityTotal liabilities and stockholders' equityXXXX$$$$Req C0000XX×××××XXXXReq B Stmt Cash Flows ><Req B Inc Stmt*Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. Req B StmtCash FlowsPrepare the statement of cash flows for Year 1. (Cash outflows should be indicated with a minus sign.)OZARK SALESStatement of Cash FlowsFor the Year Ended December 31, Year 1Req AReq B IncStmtCash flows from operating activitiesReq B BalSheetNet cash flow from operating activitiesCash flows from investing activitiesCash flows from financing activitiesNet cash flows from financing activitiesNet change in cashEnding cash balanceXXXXXXXXXXXX$< Req B Bal SheetReq C0000✓♥Req C >*Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted.

The current liabilities are the section and portion of liabilities, which are those liabilities…

Answered: Prepare the income statement, balance…

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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Question

The following transactions apply to Ozark Sales for Year 1:

The business was started when the company received $48,000 from the issue of common stock.
Purchased equipment inventory of $175,500 on account.
Sold equipment for $193,500 cash (not including sales tax). Sales tax of 8 percent is collected when the merchandise is sold. The merchandise had a cost of $118,500.
Provided a six-month warranty on the equipment sold. Based on industry estimates, the warranty claims would amount to 4 percent of sales.
Paid the sales tax to the state agency on $143,500 of the sales.
On September 1, Year 1, borrowed $20,000 from the local bank. The note had a 5 percent interest rate and matured on March 1, Year 2.
Paid $5,500 for warranty repairs during the year.
Paid operating expenses of $54,000 for the year.
Paid $124,400 of accounts payable.
Recorded accrued interest on the note issued in transaction no. 6.

Required

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?

Req B Bal
Sheet
Req B Stmt
Cash Flows
Prepare the balance sheet for Year 1. (Round your answers to the nearest whole dollar.)
Req A
Assets
Req B Inc
Stmt
Total assets
Liabilities
Total liabilities
Stockholders' equity
OZARK SALES
Balance Sheet
As of December 31, Year 1
Total stockholders' equity
Total liabilities and stockholders' equity
X
X
X
X
$
$
$
$
Req C
0
0
0
0
XX
×××××
X
X
X
X
Req B Stmt Cash Flows >
<
Req B Inc Stmt
*Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted.

Req B Stmt
Cash Flows
Prepare the statement of cash flows for Year 1. (Cash outflows should be indicated with a minus sign.)
OZARK SALES
Statement of Cash Flows
For the Year Ended December 31, Year 1
Req A
Req B Inc
Stmt
Cash flows from operating activities
Req B Bal
Sheet
Net cash flow from operating activities
Cash flows from investing activities
Cash flows from financing activities
Net cash flows from financing activities
Net change in cash
Ending cash balance
X
X
X
X
X
X
X
X
X
X
X
X
$
< Req B Bal Sheet
Req C
0
0
0
0
✓
♥
Req C >
*Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted.

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