Nicole forecasts the following amounts for the first year of operations, ending December 31, 2020: cash on hand and in the bank, $2,150; amounts due from customers from spa treatments, $1,780; building and equipment, $70,000; amounts owed to beauty supply outlets for spa equipment, $4,660; notes payable to a local bank, $38,870. Cash dividends of $2,000 will be paid to the shareholders during the year. Nicole also forecasts that first-year sales revenues will be $40,000, wages will be $24,000, the cost of supplies used up will be $7,000, selling and administrative expenses will be $5,000, and income taxes will be $1,600. Required: 1. Based on Nicole's estimates, prepare a (forecasted) income statement for Nicole's Getaway Spa for the year ended December 31, 2020. Expenses NICOLE'S GETAWAY SPA Income Statement (forecasted) For the Year Ended December 31, 2020 Total expenses
Nicole forecasts the following amounts for the first year of operations, ending December 31, 2020: cash on hand and in the bank, $2,150; amounts due from customers from spa treatments, $1,780; building and equipment, $70,000; amounts owed to beauty supply outlets for spa equipment, $4,660; notes payable to a local bank, $38,870. Cash dividends of $2,000 will be paid to the shareholders during the year. Nicole also forecasts that first-year sales revenues will be $40,000, wages will be $24,000, the cost of supplies used up will be $7,000, selling and administrative expenses will be $5,000, and income taxes will be $1,600. Required: 1. Based on Nicole's estimates, prepare a (forecasted) income statement for Nicole's Getaway Spa for the year ended December 31, 2020. Expenses NICOLE'S GETAWAY SPA Income Statement (forecasted) For the Year Ended December 31, 2020 Total expenses
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Nicole forecasts the following amounts for the first year of operations, ending December 31, 2020: cash on hand and in the bank,
$2,150; amounts due from customers from spa treatments, $1,780; building and equipment, $70,000; amounts owed to beauty supply
outlets for spa equipment, $4,660; notes payable to a local bank, $38,870.
Cash dividends of $2,000 will be paid to the shareholders during the year. Nicole also forecasts that first-year sales revenues will be
$40,000, wages will be $24,000, the cost of supplies used up will be $7,000, selling and administrative expenses will be $5,000, and
income taxes will be $1,600.
Required:
1. Based on Nicole's estimates, prepare a (forecasted) income statement for Nicole's Getaway Spa for the year ended December 31,
2020.
Expenses
NICOLE'S GETAWAY SPA
Income Statement (forecasted)
For the Year Ended December 31, 2020
Total expenses
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