Munoz Company began operations on January $1,$ year $1,$ by issuing common stock for $$37,000$ cash. During year $1,$ Munoz received $$63,600$ cash from revenue and incurred costs that required $$49,600$ of cash payments.

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

c$.$ Munoz is a manufacturing company. The $$49,600$ was paid to purchase the following items:

$(1)$ Paid $$3,800$ cash to purchase materials that were used to make products during the year.

$(2)$ Paid $$800$ cash for wages of factory workers who made products during the year.

$(3)$ Paid $$25,800$ cash for salaries of sales and administrative employees.

$(4)$ Paid $$19,200$ cash to purchase manufacturing equipment. The equipment was used solely to make products. It had a four$-$year life and a $$2,400$ salvage value. The company uses straight$-$line depreciation.

$(5)$ During year $1,$ Munoz started and completed $2,000$ units of product. The revenue was earned when Munoz sold $1,650$ units of product to its customers.

Complete this question by entering your answer in the tabs below.

Income Statement

Balance Sheet

Prepare an Income Statement.

Note: Do not round your intermediate calculations.

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