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 $6,500 to the business and receive 650 shares each. Nicole forecasts the following amounts for the first year of operations, ending December 31, 2017: cash on hand and in the bank, $3,030; amounts due from customers from spa treatments, $1,230; building and equipment, $94,525; amounts owed to beauty supply outlets for spa equipment, $5,750; notes payable to a local bank, $69,035. Cash dividends of $1,300 will be paid to the shareholders during the year. Nicole also forecasts that first-year sales revenues will be $72,500, wages will be $43,500, the cost of supplies used up will be $10,100, selling and administrative expenses will be $10,200, and income taxes will be $2,900.

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