Required information (The following information applies to the questions displayed below.) Walton Company began operations on January 1, year 1, by issuing common stock for $39,000 cash. During year 1, Walton received $70,000 cash from revenue and incurred costs that required $50,000 of cash payments. Prepare a GAAP based income statement and balance sheet for Walton Company for year 1, under each of the following independent scenarios: b. Walton is in the car rental business. The $50,000 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. Walton uses straight-line depreciation. The revenue was generated by leasing the automobiles. Complete this question by entering your answer in the tabs below. Income Statement Balance Sheet Prepare an Income Statement. WALTON COMPANY Income Statement for Year 1 Required information Prepare a balance sheet. (Amounts to be deducted should be indicated with a minus sign.) WALTON COMPANY Balance Sheet as of 12/31/Year 1 Assets Total assets Equity Total equity