Question

amework 0 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 $10,000 to the business and receive 1,000 shares each. Nicole forecasts the wing amounts for the first year of operations, ending December 31, 2018: Cash on hand and in the bank. 52.250. amounts due from customers from spa treatments. $1,790: building and equipment, $71,000, amounts owed to beauty supply outlets for spa equipment. $4,670; notes payable to a local bank for $38.970. Cash dividends of $3,000 will be paid to the stockholders during the year. Nicole also forecasts that first-year sales revenues will be $43,600, wages will be $24.500, the cost of supplies used up will be $7.500; office expenses will be $5,500; and income taxes will be $1.700. 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) For the Year Ended December 31, 2018

Answer 1

Income statement (Forecasted)

For the year ended December 31,2018

Sales revenue	43600
Expenses
Wages expense	24500
Cost of supplies	7500
Office expense	5500
Total operating expense	37500
Income before tax	6100
Income tax	1700
Net income	4400