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