A small business (Sal and Granny’s Hotdogs) is being formed by two partners, Uncle Sal and Granny. Granny will contribute an initial investment of $100,000.00 to the firm. Sal will manage the firm and begins by buying $75,000.00 worth of assets to run the firm. The assets are to be depreciated using straight-line depreciation over a period of 10 years. In the first year, Sal generates sales of $50,000.00. His cost of goods sold is recorded as $30,000.00. He has to pay fixed costs of $10,000.00 and takes a personal salary of $7,500.00 for his efforts. Sales are on credit, as are all purchases. Using the information provided here, and making necessary assumptions as required, prepares a first year income statement and balance sheet for Sal and Granny’s Hotdogs, Inc.