Vernon Company began operations on January $1,$ year $1,$ by issuing common stock for $$31,000$ cash. During year $1,$ Vernon received $$62,200$ cash from revenue and incurred costs that required $$51,200$ of cash payments.

Prepare a GAAP$-$based income statement and balance sheet for Vernon Company for year $1$ under the following scenario:

Vernon is a manufacturing company. The $$51,200$ was paid to purchase the following items:

$(1)$ Paid $$3,300$ cash to purchase materials that were used to make products during the year.

$(2)$ Paid $$2,860$ cash for wages of factory workers who made products during the year.

$(3)$ Paid $$29,440$ cash for salaries of sales and administrative employees.

$(4)$ Paid $$15,600$ cash to purchase manufacturing equipment. The equipment was used solely to make products. It had a three$-$year life and a $$2,400$ salvage value. The company uses straight$-$line depreciation.

$(5)$ During year $1,$ Vernon started and completed $2,400$ units of product. The revenue was earned when Vernon sold $2,050$ units of product to its customers.