Nicole Mackisey is thinking of forming her own spa business, Nicoles 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, 2013: Cash on hand and in the bank, $3,850; amounts due from customers from spa treatments, $1,950; building and equipment, $78,000; amounts owed to beauty supply outlets for spa equipment, $4,830; notes payable to a local bank for $39,570. Cash dividends of $2,600 will be paid to the stockholders during the year. Nicole also forecasts that first year sales revenues will be $76,800; wages will be $32,500; the cost of supplies used up will be $15,500; selling and administrative expenses will be $13,500; and income taxes will be $3,300.

Required: 1. Based on Nicoles estimates, prepare a (forecasted) income statement for Nicoles Getaway Spa for the year ended December 31, 2013.

2.

Prepare a (forecasted) statement of retained earnings for Nicoles Getaway Spa for the year ended December 31, 2013.

3.	Prepare a (forecasted) balance sheet for Nicoles Getaway Spa at December 31, 2013.