Chapter 1 - Continuing Case CC1-1 Modified.docx

Chapter 1 - Continuing Case CC1-1 Modified.docx - Chapter 1...

This preview shows 1 out of 2 pages.

Chapter 1 – Continuing Case CC1-1 - Modified Financial Statements for a Business Plan Nicole McKinsey 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 received 1,000 shares each. Nicole forecasts the following amounts for the first year of operations ending December 31, 2015: 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 for $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; office expenses will be $5,000; and income taxes will be $1,600. Assume that the Company’s Retained Earnings balance is $0. Use the following worksheets to answer the required questions below.
Image of page 1

Subscribe to view the full document.

Image of page 2
You've reached the end of this preview.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern