Required information [The following information applies to the questions displayed below.] Thornton Company began operations on January 1, year 1, by issuing common stock for $39,000 cash. During year 1, Thornton received $60,400 cash from revenue and incurred costs that required $48,400 of cash payments. Prepare a GAAP-based income statement and balance sheet for Thornton Company for year 1, for the below scenario: c. Thornton is a manufacturing company. The $48,400 was paid to purchase the following items: (1) Paid $3,700 cash to purchase materials that were used to make products during the year. (2) Paid $2,220 cash for wages of factory workers who made products during the year. (3) Paid $22,780 cash for salaries of sales and administrative employees. (4) Paid $19,700 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, Lang started and completed 2,400 units of product. The revenue was earned when Lang sold 2,050 units of product to its customers. Income Statement Balance Sheet Prepare an Income Statement. THORNTON COMPANY Income Statement for Year 1 Income Statement Balance Sheet Prepare a balance sheet. (Amounts to be deducted should be indicated with a minus sign.) THORNTON COMPANY Balance Sheet as of 12/31/Year 1 Assets Total assets $ 0 Equity Total equity $ 0