The following transactions pertain to Year 1, the first-year operations of Fanning Company. All inventory was started and completed during Year 1. Assume that all transactions are cash transactions. 1. Acquired $4,000 cash by issuing common stock. 2. Paid $720 for materials used to produce inventory. 3. Paid $1,850 to production workers. 4. Paid $1,238 rental fee for production equipment. 5. Paid $90 to administrative employees. 6. Paid $112 rental fee for administrative office equipment. 7. Produced 340 units of inventory of which 230 units were sold at a price of $13 each. Required Prepare an income statement and a balance sheet in accordance with GAAP. Complete this question by entering your answer in the tabs below. Income Statement Balance Sheet Prepare a balance sheet. (Do not round your intermediate calculations.) FANNING COMPANY Balance Sheet as of 12/31/Y1 Assets $ 0 Total assets Equity Total equity $ The following transactions pertain to Year 1, the first-year operations of Fanning Company. All inventory was started and completed during Year 1. Assume that all transactions are cash transactions. 1. Acquired $4,000 cash by issuing common stock. 2. Paid $720 for materials used to produce inventory. 3. Paid $1,850 to production workers. 4. Paid $1,238 rental fee for production equipment. 5. Paid $90 to administrative employees. 6. Paid $112 rental fee for administrative office equipment. 7. Produced 340 units of inventory of which 230 units were sold at a price of $13 each. Required Prepare an income statement and a balance sheet in accordance with GAAP. Complete this question by entering your answer in the tabs below. Income Statement Balance Sheet Prepare an income statement. (Do not round your intermediate calculations.) FANNING COMPANY Income Statement for Year 1 $ 0 $ 0 Finch Inc. makes a smartphone case that includes a battery that extends the operating life of an iPhone. The manufacturing costs per unit include $13 direct materials, $15 direct labor, and $8 manufacturing overhead. These costs are based on a production and sales volume of 5,000 units. Advertising costs amounted to $25,000. Research and development cost for the materials used in the phone cases amounted $34,000. Companywide administrative costs amounted to $48,000. Fashion design costs amounted to $28,000. Finch's management team established the sales price at 150 percent of GAAP-defined product cost. Required a. Determine the total amount of upstream costs. b. Determine the total amount of downstream cost. c. Determine the total amount of midstream cost. d. Determine the sales price per unit. e. Prepare a GAAP-based income statement. Complete this question by entering your answer in the tabs below. Reg A to D Req E Determine the total amount of Upstream, Downstream, Midstream, and Sales price per unit cost. a. b. Upstream cost Downstream cost Midstream cost Sales price per unit c d.