Question

i need help on the statement of cash flow

- inflow from sales tax

-outflow from expenses

-outflow to ourchase inventory

and also need help with total current liabilites!

i added the other pictures to give you back group information.

Required information Exercise 7-21 Current liabilities LO 7-1,7-2, 7-4, 7-10 [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 $48,500 from the issue of common stock 2. Purchased equipment inventory of $176,000 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 equipment sold. Based on industry estimates, the warranty claims would amount to 3 percent of sales 5. Paid the sales tax to the state agency on $149,500 of the sales 6. On September 1, 2018, borrowed $20,000 from the local bank. percent interest rate and matured on March 1, 2019 7. Paid $6,000 for warranty repairs during the year. 8. Paid operating expenses of $52.500 for the year. 9. Paid $125,600 of accounts payable. 10. Recorded accrued interest on the note issued in transaction no.

Answer 1

Inflow from sales tax = Sales price x Sales tax rate = $199,500 x 7% = $13,965

Outflow for expenses = $52,500 (See point 8 in the question.)

Outflow to purchase inventory = $125,600 (See point 9 in the question.)

Total current liabilities = Accounts payable + Sales tax payable + Warranty payable = $50,400 + $3,500 + ($15) = $53,885