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To support herself while attending school, Daun Deloch sold stereo systems to other students. During...

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Accounting

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To support herself while attending school, Daun Deloch sold stereo systems to other students. During the first year of operations, Deloch purchased the stereo systems for $161,000 and sold them for $302,000 cash. She provided her customers with a one-year warranty against defects in parts and labor. Based on industry standards, she estimated that warranty claims would amount to 6 percent of sales. During the year, she paid $1,910 cash to replace a defective tuner Required a-1. Prepare an income statement for Deloch's first year of operation a-2. Prepare a statement of cash flows for Deloch's first year of operation. Required A1 Required A2 Prepare a statement of cash flows for Deloch's first year of operation. DELOCH STEREOS Statement of Cash Flows Cash flows from operating activities Inflow from customers Outflow for warranty expense Outflow to purchase inventory $ 302,000 $ 302,000 0 0 Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities Net change in cash Plus: Beginning cash balance Ending cash balance 302,000 $ 0 $ 302,000 Required A1

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