Page 38 CON1-1 Financial Statements for a New Business Plan Penny Cassidy is considering forming her own pool service and supply company, Penny's Pool Service & Supply, Inc. (PPSS). She has decided to incorporate the business to limit her legal liability. She expects to invest $20,000 of her own savings and receive 1,000 shares of common stock. Her plan for the first year of operations forecasts the following amounts at December 31, the end of the current year: Cash in bank, $2,900; amounts due from customers for services rendered, $2,300; pool supplies inventory, $4,600; equipment, $28,000; amounts owed to Pool Corporation, Inc., a pool supply wholesaler, $3,500; note payable to the bank, $5,000. Penny forecasts first-year sales of $60,000, wages of $24,000, cost of supplies used of $8,200, other administrative expenses of $4,500, and income tax expense of $4,000. She expects to pay herself a $10,000 dividend as the sole stockholder of the company. Required: If Penny's estimates are correct, what would the following first-year financial statements look like for Penny's Pool Service & Supply (use Exhibits 1.2, 1.3, and 1.4 as models)? 1. Income statement 2. Statement of stockholders' equity 3. Balance sheet