Derek Johnson, with a degree in horticulture, worked for a flower distribution company for 7 years. Feeling the entrepreneurial itch, he decided to set up his own greenhouse business to cultivate and sell unique flower varieties directly to consumers. He intends selling his flowers using a website. Over the past three years, he saved $40,000. He planned to use this money as a startup capital for Pinehill Greenhouses. Current Affairs: In 2023, Derek intended to buy a piece of land and establish several greenhouses. He'd need to buy seeds, equipment, and hire a couple of employees. Derek calculated that he needs to have 5,000 in cash for unforeseen expenses. Financial Details: Startup Savings: $40,000 Land Cost: $25,000 Greenhouse Setup: $30,000 Greenhouse equipment: $20,000 Cultivation Supplies: $5,000 Other Operational Costs: water: $8,000 wage $10,000 electricity: $6,000 He also considered a bank loan with an annual interest rate of 6% repayable over ten years. Case Questions: 1) Make a balance sheet at the start of the business. 2) During the year, Derek produced 5000 flower bouquets/bunches and sold them for $15.00 each. He spent $2 for the shipment of each flower. For the production, he used $1 worth supply for each bunch. Prepare an estimated income statement for Pinehill Greenhouses' first year (assume 10-year depreciation with $0 salvage value).