CC1-1 Financial Statements for a Business Plan [LO 1-2, LO 1-3]

Nicole Mackisey is thinking of forming her own spa business, Nicole's Getaway Spa (NGS). Nicole expects that she and two family members will each contribute $10,000 to the business and receive 1,000 shares each. Nicole forecasts the following amounts for the first year of operations, ending December 31, 2018: Cash on hand and in the bank, $2,450; amounts due from customers from spa treatments, $1,810; building and equipment, $73,000; amounts owed to beauty supply outlets for spa equipment, $4,690; notes payable to a local bank for $39,170. Cash dividends of $5,000 will be paid to the stockholders during the year. Nicole also forecasts that first-year sales revenues will be $50,800; wages will be $25,500; the cost of supplies used up will be $8,500; office expenses will be $6,500; and income taxes will be $1,900.

CC1-1 Part 3

3. Prepare a (forecasted) balance sheet for Nicole's Getaway Spa at December 31, 2018.

40 ! Part 3 of 4 3 4 0.6 points Required information CC1-1 Financial Statements for a Business Plan [LO 1-2, LO 1-3] [The following information applies to the questions displayed below.) Nicole Mackisey is thinking of forming her own spa business, Nicole's Getaway Spa (NGS). Nicole expects that she and two family members will each contribute $10,000 to the business and receive 1,000 shares each. Nicole forecasts the following amounts for the first year of operations, ending December 31, 2018: Cash on hand and in the bank, $2,450; amounts due from customers from spa treatments, $1,810; building and equipment, $73,000; amounts owed to beauty supply outlets for spa equipment, $4,690; notes payable to a local bank for $39,170. Cash dividends of $5,000 will be paid to the stockholders during the year. Nicole also forecasts that first-year sales revenues will be $50,800; wages will be $25,500; the cost of supplies used up will be $8,500; office expenses will be $6,500; and income taxes will be $1,900. CC1-1 Part 3 3. Prepare a (forecasted) balance sheet for Nicole's Getaway Spa at December 31, 2018. % Answer is complete but not entirely correct. NICOLE'S GETAWAY SPA Balance Sheet (forecasted) At December 31, 2018 Assets Cash $ Accounts Receivable Building and Equipment 2,450 1,810 73,000 Total Assets 77,260 Liabilities S Accounts Payable Notes Payable olol 4,690 39,170 43,860 Total Liabilities Stockholders' Equity Common Stock Retained Earnings 30,000 5,000 X OOOO 35,000 Total Stockholders' Equity Total Liabilities and Stockholders' Equity 78,860