Required information [The following information applies to the questions displayed below] Wang Company began operations on January 1 , Year 1 , by issuing common stock for $70,000 cash. During Year 1 , Wang received $88,000 cash from revenue and incurred costs that required $65,000 of cash payments. Prepare a GAAP-based income statement and balance sheet for Wang Company for Year 1, under the following independent scenario: c. Wang is a manufacturing company. The $65,000 was paid to purchase the following items: (1) Paid $10,000 cash to purchase materials that were used to make products during the year. (2) Paid $20,000 cash for wages of factory workers who made products during the year. (3) Paid $5,000 cash for salaries of sales and administrative employees. (4) Paid $30,000 cash to purchase manufacturing equipment. The equipment was used solely to make products. It had a three-year life and a $6,000 salvage value. The company uses straight-line depreciation. (5) During Year 1, Wang started and completed 2,000 units of product. The revenue was earned when Wang sold 1,500 units of product to its customers. WANG COMPANY Income Statement for Year 1