Please help create an income statement and balance sheet for the following company:

Heather was granted distribution rights to her product called Nutrifusion. Her and her father, Jeff, want to start a food company, Healthy Life Group (HLG), to market this product throughout Canada. They are hoping they can earn a profit of $50,000 in its first year of operations, with plans to grow profits by 20% each subsequent year. In order to start the business, they both plan to invest $25,000 each, and in return, receive 1,000 common shares. The largest portion of this capital investment would be used to obtain the Canadian patent on the Nutrifusion production process, which is estimated to cost $10,000, and the cost to prosecute the patent into issuance would be $12,000. HLG would also incur fees, estimated to total $8,000, to incorporate the business, obtain a business license, and complete name registration. These start-up costs are to be expensed in HLGs first fiscal year.

Heather believed a strategic alliance with Loblaws Companies would help distribution. Under this alliance, Nutrifusion would be used in the production of Presidents Choice (Loblaws own private label brand) products.

In its first year of operations, all HLG sales would be made to Loblaws on credit. HLG agreed to offer Loblaws credit terms of net 60.

HLG purchased the Nutrifusion powder from its American distributor on account, and the American supplier extended credit terms of net 30. The powder cost amounted to 30% of HLGs sales to Loblaws.

HLG planned to rent office space close to Loblaws headquarters. Office rent would be $990 a month for a 3-year term and required immediate payment of both first and last months rent. The office speed needed some furnishings and fixtures, so Heather budgeted $5,000 for these items. The furniture and fixtures would be depreciated using the straight-line method and had an estimated useful life of 5 years with no residual value. Another $4,500 would be spend on computer equipment, which would be depreciated using the double declining balance over an estimated useful life of 4 years, assuming a residual value of $500.

Other estimated costs to be paid fully by fiscal year-end:

Advertising	$3,000
Utilities	1,200
Printing	440
Travel	2,250
Insurance	800
Phone and Internet	770
Office Supplies	340
Miscellaneous	500
TOTAL	$9,300

Heather would also work full-time for HLG as its only employee. She projected a $40,000 salary for herself in HLGs first year of operations.