Julianne has worked in a retail toy store for $8$ years. Last year, Julianne$$s wages were $$60,000.$ Lately, Julianne has been unhappy with the shop$$s owner. Convinced that she could run a toy store better at a lower cost, Julianne decided to go into business for herself and opened her own shop called Toys $4$ U on January $1$st of the year.

To get the business going, Julianne decided to invest heavily in advertising. She spent $$10,000$ on advertising aimed at consumers. Julianne also purchased computers, printers, and other equipment needed for her retail store for $$6,000.$ She estimated that the equipment she purchased can be used for about five years before maintenance costs would be too high and they would need to be replaced. All equipment is estimated to be worth $10\%$ of their original cost at the end of their life.

At the end of the first year of business, Julianne had received $$150,000$ in cash from customers, of which $$10,000$ was cash paid in advance for pre$-$ordered toys.

A review of Julianne$$s checkbook shows she paid the following $($in addition to those mentioned previously$)$ during the first year of business:

Toys Beginning Inventory, Jan $1$ $$70,000$

Supplies purchased $8,000$

Wages paid$$part$-$time assistant $12,500$

Rent paid $12,000$

$2-$year Insurance policy purchased Jan $13,200$

Utilities paid $1,500$

Miscellaneous expenses $1,000$

Julianne$$s utility bill for the last month of the fiscal year was $$150.$ She has not recorded the bill and plans to pay it in the next $30$ days.

At the end of the year, about $$26,000$ of toys inventory purchased during the year was in her store stock. In addition, $$2,000$ in supplies had not been used. Julianne$$s corporate income tax rate is $30\%.$

Requirement $1(20$ points$)-$ Prepare an income statement for Toys $4$ U for the fiscal year ended December $31,2023$ in proper form $($see sample of proper form below$).$

Requirement $2(10$ points$)$ Write a memo to Julianne stating whether you think it was a good idea for her to open the Toy shop or if she should have stayed employed at her old job. State your reasons for your opinion. Do you have any recommendations for Julianne? Your memo should be at least $1$ page, double spaced, and $12-$point font.

You may attach $2$ separate files for the requirements above or combine both the income statement and written memo into $1$ document. Acceptable file formats are Excel or Word.

Income Statement format should look as follows: