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. Prepare a GAAP-based income statement and balance sheet for Thornton Company for year 1 under the following scenario: c. Thornton is a manufacturing company. The $36,300 was paid to purchase the following items: (1) Paid $3,900 cash to purchase materials that were used to make products during the year. (2) Paid $800 cash for wages of factory workers who made products during the year. (3) Paid $11,100 cash for salaries of sales and administrative employees. (4) Paid $20,500 cash to purchase manufacturing equipment. The equipment was used solely to make products. It had a four-year life and a $2,500 salvage value. The company uses straight-line depreciation. (5) During year 1, Thornton started and completed 2,000 units of product. The revenue was earned when Thornton sold 1,500 units of product to its customers. Complete this question by entering your answer in the tabs below. Income Statement Balance Sheet Prepare an Income Statement. Note: Do not round your intermediate calculations. S < Prev 4 of 5 Next >