Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed 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 receive 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, $3,550; amounts due from customers from spa treatments, $1,920; building and equipment, $75,000; amounts owed to beauty supply outlets for spa equipment, $4,800; notes payable to a local bank for $40,270. Cash dividends of $4,500 will be paid to the stockholders during the year. Nicole also forecasts that first-year sales revenues will be $69,900; wages will be $31,000; the cost of supplies used up will be $14,000; office expenses will be $12,000; and income taxes will be $3,000. CC1-1 (Algo) Part 4 4. Are creditors or stockholders expected to supply most of the financing for NGS's assets at December 31, 2021? Creditors Stockholders

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions