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Required information [The following information applies to the questions displayed below} Nicole Mackisey is thinking of forming her own spa business, Nicole's Getaway Spa (NGS).
Required information [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 $11,000 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, $2,750; amounts due from customers from spo treatments, $1,840; building and equipment, $76,000; amounts owed to beauty supply outlets for spa equipment, $4,720; notes payable to a local bank for $39,470. Cosh dividends of $8,000 wili be paid to the stockholders during the year. Nicole also forecasts that first-year sales revenues will be $58,600; wages will be $27,000; the cost of supplies used up will be $10,000;; oflice expenses will be $8,000; and income taxes will be $2.200. Required: 1. Based on Nicole's estimates, prepare a (forecasted) income statement for Nicole's Getaway Spa for the year ended December 31 , 2021
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