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 $11,500 to the business and receive 1,150 shares each. Nicole forecasts the following amounts for the first year of operations, ending December 31, 2017: cash on hand and in the bank, $2,430; amounts due from customers from spa treatments, $2,380; building and equipment, $84,435; amounts owed to beauty supply outlets for spa equipment, $8,050; notes payable to a local bank, $41,635. Cash dividends of $2,300 will be paid to the shareholders during the year. Nicole also forecasts that first-year sales revenues will be $96,000, wages will be $57,600, the cost of supplies used up will be $15,200, selling and administrative expenses will be $12,000, and income taxes will be $3,840. Required: 1. Based on Nicole's estimates, prepare a (forecasted) income statement for Nicole's Getaway Spa for the year ended December 31, 2017.

2. Prepare a (forecasted) statement of retained earnings for Nicoles Getaway Spa for the year ended December 31, 2017.

3. Prepare a (forecasted) balance sheet for Nicoles Getaway Spa at December 31, 2017.

4. As of December 31, 2017, would most of the financing for assets come from creditors or shareholders?

• Creditors

• Shareholders