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Required information CC1-1 (Algo) Financial Statements for a Business Plan [LO 1-2, LO 1-3] [The following information applies to the questions displayed below.] Nicole Mackisey
Required information CC1-1 (Algo) Financial Statements for a Business Plan [LO 1-2, LO 1-3] [The following information applies to the questions displayed below.] 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 $10,000 to the business and recelve 1,000 shares each. Nicole forecasts the following amounts for the first year of operations, ending December 31, 2021: Cash on hand and in the bank, $3,150; amounts due from customers from spa treatments, $1,880; building and equipment, $71,000; amounts owed to beauty supply outlets for spa equipment, $4,760; notes payable to a local bank for $39,870. Cash dividends of $5,000 will be paid to the stockholders during the year. Nicole also forecasts that first-year sales revenues will be $60,000; wages will be $29,000; the cost of supplies used up will be $12,000; office expenses will be $10,000; and income taxes will be $2,600. CC1-1 (Algo) Part 3 3. Prepare a (forecasted) balance sheet for Nicole's Getaway Spa at December 31, 2021. 3. Prepare a (forecasted) balance sheet for Nicole's Getaway Spa at December 31, 2021
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