1. Prepare a P&L (Income statement) for the first year of operations. For a special project/event, you will need to annualize your cost/revenue data to prepare an annual report (Cost revenue per event X # of events in a year). Please do a picture and explanation will like immediately
2. Prepare a Balance Sheet at end of the first year of operations. (must be in balance). The balance sheet will be slightly different for the Owners equity section depending on business structure

Monthly rental rate per unit: $2,000

Number of beauty professionals renting: 10

Annual revenue from renting = Monthly rental rate * Number of beauty professionals * 12

Annual revenue from renting = $2,000 * 10 * 12 = $240,000

Revenue from memberships:

Annual membership fee per unit: $3,879

Number of estimated memberships: 25

Annual revenue from memberships = Annual membership fee * Number of memberships

Annual revenue from memberships = $3,879 * 25 = $96,975

Variable costs:

Variable costs are costs that change with the level of sales or production.

The provided information doesn't specify the variable costs associated with the business, so we'll assume it to be $24,500 for the calculation.

Fixed costs:

Fixed costs are costs that do not vary with the level of sales or production.

The provided information doesn't specify the exact fixed costs, so we'll assume it to be $637,212 for the calculation.

Contribution margin:

Contribution margin = Total sales - Variable costs

Contribution margin = ($240,000 + $96,975) - $24,500 = $312,475

Net profit/loss:

Net profit/loss = Contribution margin - Fixed costs

Net profit/loss = $312,475 - $637,212 = -$324,737 (Net loss in the first year)

Revenue:

• Rental income from beauty suites: $240,000
• Membership revenue: $96,975 Total revenue: $336,975

Variable costs: $24,500

Contribution margin: $312,475 (Total revenue - Variable costs)

Fixed costs: $637,212

Net profit/loss: -$324,737 (Contribution margin - Fixed costs)