The following transactions pertain to 2007, the first year operations of Lakeview Company. All inventory was started and completed during 2007. Assume that all transactions are cash transactions.

1. Acquired \($3,000\) cash by issuing common stock.

2. Paid \($600\) for materials used to produce inventory.

3. Paid \($900\) to production workers.

4. Paid \($300\) rental fee for production equipment.

5. Paid \($240\) to administrative employees.

6. Paid \($120\) rental fee for administrative office equipment.

7. Produced 300 units of inventory of which 200 units were sold at a price of \($10.50\) each.

Required:
Prepare an income statement, balance sheet, and statement of cash flows.