Hi, I am stuck on this practice assignment for my finance class. I am opening a sole proprietor business as a wedding planner and i am supposed to do a balance sheet and an income statement for year 1 and then use the percentage of sales method to prepare the balance sheet for year 2, 3, and 4. so far i have the following: This upcoming year 2023, I will be starting a sole proprietorship type of business. My business will be based from home and I will be a self-employed person working as a wedding planner for the people in my church community as a start. I will use my contact and my connection to help future couples to plan their wedding, deal with the vendors, and coordinate the chain of events at the wedding and reception to make sure the day goes off without a hitch. As a start-up business, a sole proprietorship will help me avoid the corporate income taxes and the profits will be taxed as my individual income. This type of business will however limit the success of the project to my personal wealth. In the future once the business is successful, I will register it and establish a corporation business. My revenue model is divided into two parts, the first part is based on being a wedding planner for the day of the wedding only and the second part is based on planning a full wedding from A-Z. The payments will be 50% in advance and 50% on the wedding day. Revenues will increase through: Increase in market: assuming a 10% a year average growth New clients (marketing in other churches and locations) Higher fees as we get our name and service more popular in the market. I will start with $2000 in equity capital from savings and there will be no loans from the banks or other people (equity only, no debt). Initial equipment will be what we "normally" have around the house. A computer, screens, personal cell phone, Wi-Fi, wedding designer software, and a one-time training program on how to become a wedding planner. I will charge the monthly fees for those to the company, and it will be payable one month in advance. In regard to preparing the wedding, invitations, contracts, etc., and any other document storage, we will be using Google Business and it will be a monthly subscription, payable one month in advance. First-year marketing will be for free as I will be marketing in my monthly local church newsletter. In the following years, I will start marketing on Facebook and other social media platforms, the budget for this will be 500$ per year as a start. There will be no paid salaries. My regulator requires me to maintain at least $1,000 cash in the bank account at all times. I will charge customers $1,000 for the day of the wedding planning and 2,000$ for the full wedding planner. My vision for this business is as the following: In year 1, I will be working from home and meeting customers in public areas such as coffee shops or church basement. First-year, we are going to start with three weddings, two are the day of a wedding planner and one is a full wedding planning. In year 2, I expect to rent the conference room in the church basement at $50 a month, payable in advance. In year 3, I expect to add new clients with $7,000 in assets. Assuming we have three wedding planning on the day of the wedding and two full wedding planning. I will also start marketing my service on Facebook, Instagram, etc. (will invest $500 in marketing material). In year 4, I will start offering services for other events such as engagement ($800/ event) and party planning ($500 per party). I am expecting to have 3 engagements and 3 party events. Our teacher gave us an example as the following: CHI Investments Inc. CHI Investments inc is a corporation offering Investment Management services to Institutions and High Net Worth Individuals. The Corporate structure enables me to add other shareholders, separates the firm's assets from my own, and ultimately sell the firm. Our revenue model is a negotiated fee levied on the clients' assets we manage, billed monthly, in arrears. Revenues will increase through Increase in Markets - we assume 10% a year average growth New Clients Higher fees We start with $100 000 in Equity Capital from savings and $1 Million from Friends and family to invest in our portfolios on which we charge a fee of 100bp (1%). Our bank will not advance us any loans. Initial equipment is what we "normally" have around the house - a computer each, an additional screen each, our own cell phones, WIFI, etc. We will charge the monthly fees for those to the company, payable one month in advance. We use Google Business for document storage, email, etc. It is a monthly subscription, payable one month in arrears We do not hold Client assets - Private clients open an account with an online broker and give us access to trade on their behalf, so we have no fees associated with that. Institutional clients set us up as a subaccount at their custodians We have ongoing compliance and legal fees. Our regulator requires we maintain at least $ 25 000 cash in the bank account at all times. We do not pay salaries!! We do not pay dividends until Equity is above the starting $100 K In year 1 we WFH for the first six months then rent office space at $1250 a month, payable in advance. In Year 2 we expect to add new clients with $1 000 000 in assets (we assume for only part of a year) In years 3 we assume we will receive an institutional mandate - a significantly larger amount of money to manage but at a lower fee; $10 000 000 but at 75 bp. Taking on this client requires us to subscribe to Bloomberg at $2500 a month payable in advance, and MSCI data which is $10000 in the first year, $20000 in year 2, then $50000 annually. We buy new Computers for $10 000 depreciated over 5 years. In years 4 we assume we will receive an additional institutional mandate -$15 000 000 at 75 bp. Taking on this client requires us to subscribe to MSCI Market data for $20000 in the first year, $40000 in the second year, then $75000 every year after In years 5 we assume we will NOT receive any new clients and markets fall 10%

Income Statament

Balance sheet 1

Balance sheet 2

My Question: Can you please do the income statement and balance sheet for me based on the information about my company and following the same structure as per the professor? I am not sure how to translate my information into an income statement and balance sheet