Concept explainers
Financial Statements for a Business Plan
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
Required:
- 1. Based on Nicole’s estimates, prepare a (forecasted) income statement for Nicole’s Getaway Spa for the year ended December 31, 2015.
- 2. Prepare a (forecasted) statement of
retained earnings for Nicole’s Getaway Spa for the year ended December 31, 2015. - 3. Prepare a (forecasted) balance sheet for Nicole’s Getaway Spa at December 31, 2015.
- 4. As of December 31, 2015, would most of the financing for assets come from creditors or stockholders?
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