Baird Company began operations on January $1,$ Year $1,$ by issuing common stock for $$35,000$ cash. During Year $1,$ Baird received $$64,600$ cash from revenue and incurred costs that required $$49,600$ of cash payments.

Prepare a GAAP$-$based income statement and balance sheet for Baird Company for Year $1$ under the following scenario:

Baird is in the car rental business. The $$49,600$ was paid to purchase automobiles. The automobiles were purchased on January $1,$ Year $1,$ and have four$-$year useful lives, with no expected salvage value. Baird uses straight$-$line depreciation. The revenue was generated by leasing the automobiles.