The following transactions apply to Ozark Sales for Year 1:
1. The business was started when the company received $49,000 from the issue of common
stock.
2. Purchased merchandise inventory of $174,500 on account.
3. Sold merchandise for $197,500 cash (not including sales tax). Sales tax of 6 percent is
collected when the merchandise is sold. The merchandise had a cost of $122,500.
4. Provided a six-month warranty on the merchandise 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 $147,500 of the sales.
6. On September 1, Year 1, borrowed $20,500 from the local bank. The note had a 5 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 $53,000 for the year.
9. Paid $125,800 of accounts payable.
10. Recorded accrued interest on the note issued in transaction number 6.
c-1. Prepare the income statement for Year 1.
c-2. Prepare the balance sheet for Year 1.
c-3. Prepare the statement of cash flows for Year 1.
Complete this question by entering your answers in the tabs below.
Req C1 Req C2 Req C3
Prepare the statement of cash flows for Year 1. (Round your answers to the nearest dollar. Enter cash outflows and amount
to be deducted with a minus sign.)
OZARK SALES
Statement of Cash Flows
For the Year Ended December 31, Year 1
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
$ 0
$ 0
$ 0
