Perez Manufacturing Company started operations on January 1, Year 1. During Year 1, the company engaged in the following transactions. Issued common stock for $80,000. Paid $21,000 cash to purchase raw materials used to make products. Transferred $17,000 of raw materials to the production department. Paid $29,500 cash for labor used to make products. Paid $47,000 cash for overhead costs (assume actual and estimated overhead are the same). Finished work on products that cost $71,000 to make. Sold products that cost $62,000 to make for $85,000 cash. Required Prepare the December 31, Year 1, balance sheet. Prepare the December 31, Year 1, income statement