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 $174,500 on account. sold equipment for $191,500 cash (not including sales tax). sales tax of 8 percent is collected when the merchandise is sold. the merchandise had a cost of $116,500. 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 $141,500 of the sales. on september 1, year 1, borrowed $20,000 from the local bank. the note had a 6 percent interest rate and matured on march 1, year 2. paid $5,800 for warranty repairs during the year. paid operating expenses of $54,500 for the year. paid $125,100 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?
