Required information Problem 10-26A (Algo) Service versus manufacturing companies LO 10-4 [The following information applies to the questions displayed below.] Baird Company began operations on January 1, Year 1, by issuing common stock for $35,000 cash. During Year 1, Baird received $52,700 cash from revenue and incurred costs that required $38,700 of cash payments. Problem 10-26A (Algo) Part c Prepare a GAAP-based income statement and balance sheet for Baird Company for Year 1, under the following independent scenario: c. Baird is a manufacturing company. The $38,700 was paid to purchase the following items: (1) Paid $3,500 cash to purchase materials that were used to make products during the year. (2) Paid $3,120 cash for wages of factory workers who made products during the year. (3) Paid $10,380 cash for salaries of sales and administrative employees. (4) Paid $21,700 cash to purchase manufacturing equipment. The equipment was used solely to make products. It had a four- year life and a $2,100 salvage value. The company uses straight-line depreciation. (5) During Year 1, Baird started and completed 2,400 units of product. The revenue was earned when Baird sold 1,950 units of product to its customers.