The following transactions apply to Ozark Sales for Year 1:
b-1. Prepare the income statement for Year 1.
b-2. Prepare the balance sheet for Year 1.
b-3. Prepare the statement of cash flows for Year 1.
Part b-1 | Income Statement | ||||
Sales | $ 203,000 | ||||
Less: Cost of Goods Sold | $-128,000 | ||||
Gross Profit | $ 75,000 | ||||
Operating Expense | $ 54,500 | ||||
Warranty Expense ($203,000*4%) | $ 8,120 | ||||
Total Operating Expense | $ -62,620 | ||||
Operating Income | $ 12,380 | ||||
Add: Other income/gains | |||||
Interest Revenue | $ 478 | ||||
Net Income | $ 12,858 | ||||
Part b-2 | Balance Sheet | ||||
Assets: | |||||
Cash | $ 91,100 | ||||
Inventory | $ 47,000 | ||||
Interest Receivable ($20,500*7%*4/12) | $ 478 | ||||
Total Assets | $ 138,578 | ||||
Liabilities: | |||||
Accounts Payable | $ 49,100 | ||||
Estimated Warranty | $ 2,120 | ||||
Sales Tax Payable | $ 4,000 | ||||
Note Payable | $ 20,500 | ||||
Total liabilities | $ 75,720 | ||||
Stockholder's Equity | |||||
Common Stock | $ 50,000 | ||||
Retained Earning | $ 12,858 | ||||
Total Stockholder's Equity | $ 62,858 | ||||
Total Liabilities and equity | $ 138,578 | ||||
Part b-2 | Cash Flow | ||||
Cash flow from operating activities: | |||||
Cash from sales | $ 219,240 | ||||
Cash paid for repairs | $ -6,000 | ||||
Cash paid for operating expense | $ -54,500 | ||||
Cash paid for sales tax | $ -12,240 | ||||
Cash paid for purchases | $-125,900 | ||||
Total Cash flow from operating activities | $ 20,600 | ||||
Cash flow from Financing activities: | |||||
Issue of common stock | $ 50,000 | ||||
Borrowing from bank | $ 20,500 | ||||
Cash flow from financing activities | $ 70,500 | ||||
Net Increase/decrease | $ 91,100 |
The following transactions apply to Ozark Sales for Year 1: The business was started when the co...
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 $175,000 on account. Sold equipment for $203,000 cash (not including sales tax). Sales tax of 8 percent is collected when the merchandise is sold. The merchandise had a cost of $128,000. Provided a six-month warranty on the equipment sold. Based on industry estimates, the warranty claims would amount to 4 percent...
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 $177,000 on account.Sold equipment for $205,000 cash (not including sales tax). Sales tax of 6 percent is collected when the merchandise is sold. The merchandise had a cost of $130,000.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...
[The following information applies to the questions displayed below.] The following transactions apply to Ozark Sales for Year 1: 1. The business was started when the company received $48,500 from the issue of common stock. 2. Purchased equipment inventory of $175,500 on account. 3. Sold equipment for $203,000 cash (not including sales tax). Sales tax of 6 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...
The following transactions apply to ozark sales for Year 1
[The following information applies to the questions displayed below.] The following transactions apply to Ozark Sales for Year 1: 1. The business was started when the company received $48,500 from the issue of common stock 2. Purchased equipment inventory of $178,000 on account 3. Sold equipment for $201,000 cash (not including sales tax). Sales tax of 7 percent is collected when the merchandise is sold. The merchandise had a cost...
The following transactions apply to Bobs Scuba Sales for
2018:
The business was started when the company received $48,500 from
the issue of common stock.
Purchased equipment inventory of $176,000 on the account.
Sold equipment for $202,500 cash (not including sales tax). A
sales tax of 7 percent is collected when the merchandise is sold.
The merchandise had a cost of $127,500.
Provided a six-month warranty on the equipment sold. Based on
industry estimates, the warranty claims would amount to...
Required informationExercise 9-8A Current liabilities LO 9-1, 9-2, 9-4[The following information applies to the questions displayed below.] 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 $175,000 on account.Sold equipment for $209,000 cash (not including sales tax). Sales tax of 8 percent is collected when the merchandise is sold. The merchandise had a cost of $134,000.Provided a six-month warranty on the equipment sold....
The following transactions apply to Ozark Sales for Year 1: 1. The business was started when the company received $48.500 from the issue of common stock 2. Purchased equipment inventory of $176,500 on account 3. Sold equipment for $195,500 cash (not including sales tax). Sales tax of 7 percent is collected when the merchandise is sold. The merchandise had a cost of $120,500. 4. Provided a six-month warranty on the equipment sold. Based on industry estimates, the warranty claims would...
Required information The following information applies to the questions displayed below. The following transactions apply to Ozark Sales for 2018 1. The business was started when the company received $49,000 from the issue of common stock. 2. Purchased equipment inventory of $175,500 on account. 3. Sold equipment for $192,500 cash (not including sales tax). Sales tax of 8 percent is collected when the merchandise is sold. The merchandise had a cost of $117,500 4. Provided a six-month warranty on the...
Required information [The following information applies to the questions displayed below.] The following transactions apply to Ozark Sales for 2018: 1. The business was started when the company received $50,000 from the issue of common stock. 2. Purchased equipment inventory of $380,000 on account 3. Sold equipment for $510,000 cash (not including sales tax). Sales tax of 8 percent is collected when the merchandise is sold. The merchandise had a cost of $330,000. 4. Provided a six- month warranty on...
Required information [The following information applies to the questions displayed below.] The following transactions apply to Ozark Sales for 2018: 1. The business was started when the company recelved $49,500 from the issue of common stock. 2 Purchased equipment Inventory of $174.500 on account. 3. Sold equipment for $199,500 cash (not including sales tax). Sales tax of 7 percent is collected when the merchandise is sold. The merchandise had a cost of $124.500. 4. Provided a six-month warranty on the...