Product versus general, selling, and administrative costs The following transactions pertain to 2008, the first year of operations of Pinion Company. All inventory was started and completed during the accounting period. All transactions were cash transactions.

1. Acquired $56,000 of contributed capital from its owners.

2. Paid $9,600 for materials used to produce inventory.

3. Paid $4,400 to production workers.

4. Paid $5,000 rental fee for production equipment.

5. Paid $1,500 to administrative employees.
6. Paid $3,200 rental fee for administrative office equipment.
7. Produced 1,900 units of inventory of which 1,500 units were sold at a price of $17.40 each.
Required Prepare an income statement, balance sheet, and statement of cash flows.