Stmt of Cash Flows and Req C, please The following transactions apply to Ozark Sales for Year 1: The business was started when the company received $50,000 from the issue of common stock. Purchased equipment inventory of $178,000 on account. Sold equipment for $192,000 cash (not including sales tax). Sales tax of 6 percent is collected when the merchandise is sold. The merchandise had a cost of $117,000. 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 $142,000 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 $5,900 for warranty repairs during the year. Paid operating expenses of $56,000 for the year. Paid $124,000 of accounts payable. Recorded accrued interest on the note issued in transaction no. 6. Required Record the given transactions in a horizontal statements model. 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?
Stmt of Cash Flows and Req C, please The following transactions apply to Ozark Sales for Year 1: The business was started when the company received $50,000 from the issue of common stock. Purchased equipment inventory of $178,000 on account. Sold equipment for $192,000 cash (not including sales tax). Sales tax of 6 percent is collected when the merchandise is sold. The merchandise had a cost of $117,000. 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 $142,000 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 $5,900 for warranty repairs during the year. Paid operating expenses of $56,000 for the year. Paid $124,000 of accounts payable. Recorded accrued interest on the note issued in transaction no. 6. Required Record the given transactions in a horizontal statements model. 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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Stmt of
The following transactions apply to Ozark Sales for Year 1:
- The business was started when the company received $50,000 from the issue of common stock.
- Purchased equipment inventory of $178,000 on account.
- Sold equipment for $192,000 cash (not including sales tax). Sales tax of 6 percent is collected when the merchandise is sold. The merchandise had a cost of $117,000.
- 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 $142,000 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 $5,900 for warranty repairs during the year.
- Paid operating expenses of $56,000 for the year.
- Paid $124,000 of accounts payable.
- Recorded accrued interest on the note issued in transaction no. 6.
Required
- Record the given transactions in a horizontal statements model.
- 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?
Transcribed Image Text:Complete this question by entering your answers in the tabs below.
Req B Bal
Req B Stmt
Cash Flows
Sheet
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
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
< Req B Bal Sheet
Req C
Req C >
Transcribed Image Text:Complete this question by entering your answers in the tabs below.
Req B Inc
Stmt
Req B Bal
Req B Stmt
Cash Flows
Sheet
What is the total amount of current liabilities at December 31, Year 1? (Round your answer to the nearest whole dollar.)
Req A
Total current liabilities
< Req B Stmt Cash Flows
Req C
Req C >
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