Required information CC1-1 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 1000 shares each, Nicole forecasts the following amounts for the first year of operations, ending December 31, 2018: Cash on hand and in the bank $3,950, amounts due from customers from spa treatments, $1.960, building and equipment. $72,000, amounts owed to beauty supply outlets for spa equipment, $4,840; notes payable to a local bank for $39,670. Cash dividends of $3,600 will be paid to the stockholders during the year, Nicole also forecasts that first-year sales revenues will be $73,400, wages will be $33.000, the cost of supplies used up will be $16,000; office expenses will be $14,000, and income taxes will be $3,400, CC1-1 Part 1 Required: 1. Based on Nicole's estimates, prepare a (forecasted) income statement for Nicole's Getaway Spa for the year ended December 31, 2018 NICOLE'S GETAWAY SPA Income Statement (forecasted) Required information CC1-1 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, 2018: Cash on hand and in the bank, $3,950; amounts due from customers from spa treatments, $1960; building and equipment, $72,000; amounts owed to beauty supply outlets for spa equipment, $4,840; notes payable to a local bank for $39,670. Cash dividends of $3,600 will be paid to the stockholders during the year. Nicole also forecasts that first-year sales revenues will be $73,400; wages will be $33,000, the cost of supplies used up will be $16,000 office expenses will be $14,000; and income taxes will be $3,400. CC1-1 Part 2 2. Prepare a (forecasted) statement of retained earnings for Nicole's Getaway Spa for the year ended December 31, 2018, NICOLE'S GETAWAY SPA Statement of Retained Earnings (forecasted) Retained Earnings, January 1, 2018 Retained Earnings, December 31, 2018 CC1-1 Part 3 3. Prepare a (forecasted) balance sheet for Nicole's Getaway Spa at December 31, 2018 NICOLE'S GETAWAY SPA Balance Sheet (forecasted) Required Information CC1-1 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, 2018: Cash on hand and in the bank $3.950 amounts due from customers from spa treatments, $1,960, building and equipment, $72,000, amounts owed to beauty supply outlets for spa equipment, $4,840; notes payable to a local bank for $39,670. Cash dividends of $3,600 will be paid to the stockholders during the year. Nicole also forecasts that first-year sales revenues will be $73,400, wages will be $33,000, the cost of supplies used up will be $16,000, office expenses will be $14,000, and income taxes will be $3,400. CC1-1 Part 4 4. Are creditors or stockholders expected to supply most of the financing for NGS's assets at December 31, 2018? Creditors Stockholders
