thornton Company began operations on January $1,$ year $1,$ by issuing common stock for $$33,000$ cash. During year $1,$ Thornton received $$47,300$ cash from revenue and incurred costs that required $$36,300$ of cash payments.

Required

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

Thornton is a promoter of rock concerts. The $$36,300$ was paid to provide a rock concert that produced the revenue.Since the number of units decreases, both total revenue and total variable cost will decrease.$)$

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

Required B

Required C

If the economy contracts in coming years, Larson and Benson will both suffer a $12$ percent decrease in sales volume,

assuming that the selling price remains unchanged. Compute the change in net income for each firm in dollar amount and in

percentage. $($Note: Since the number of units decreases, both total revenue and total variable cost will decrease.$)$

Note: Amounts to be deducted should be indicated with a minus sign. Enter "Variable cost per unit" and "Percentage change"

amounts to $2$ decimal places. Round all other answers to the nearest whole dollar amount.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 $$33,000$ cash. During year $1,$

Thornton received $$47,300$ cash from revenue and incurred costs that required $$36,300$ of cash payments.

Required

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

a$.$ Thornton is a promoter of rock concerts. The $$36,300$ was paid to provide a rock concert that produced the revenue.

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

Income

Statement

Balance Sheet

Prepare an Income Statement.

THORNTON COMPANY

Income Statement for Year $1$