Based on the information below create an income statement, balance sheet, and cash flow statement.

On January 2, 2003, Alexander, together with a number of relatives and friends, established Chemalite, Inc.; 500,000 shares were issued, of which Alexander received 125,000 in exchange for his patent, and the remainder were sold to the other investors at $1 per share. During the period January 2, 2003, through June 30, 2003, Chemalite, Inc., made the following expenditures:

• January 15Paid $7,500 in legal fees, charter costs, and printing expenses associated with the incorporation of the company.
• June 15Spent $62,500 building the machinery that would be used to produce the first commercial models of the Chemalite.
• June 24Purchased $75,000 worth of plastics and chemicals for use in the production of commercial Chemalites.

Between January 2 and June 30, the companys bank balance had fallen from $375,000 to $230,000.