Answered step by step
Verified Expert Solution
Question
1 Approved Answer
[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
[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, $3,850; amounts due from customers from spa treatments, $1,950; building and equipment, $78,000; amounts owed to beauty supply outlets for spa equipment, $4,830; notes payable to a local bank for $39,570. Cash dividends of $2,600 will be paid to the stockholders during the year. Nicole also forecasts that first-year sales revenues will be $76,800; wages will be $32,500; the cost of supplies used up will be $15,500; office expenses will be $13,500; and income taxes will be $3,300. CC1-1 (Algo) 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, 2021. NICOLE'S GETAWAY SPA Income Statement (forecasted) 0 0
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started