ation $1$ i

Required information

CON$1-1($Algo$)$ Financial Statements for a New Business Plan LO$1-1$

$[$The following information applies to the questions displayed below.$]$

Penny Cassidy is considering forming her own pool service and supply company, Penny's Pool Service & Supply, Incorporated. She has decided to incorporate the business to limit her legal liability. She expects to invest $$23,000$ of her own savings and receive $2,000$ shares of common stock. Her plan for the first year of operations forecasts the following amounts at December $31,$ the end of the current year: cash in bank, $$3,200$; amounts due from customers for services rendered, $$2,600$; pool supplies inventory, $$4,900$; equipment, $$28,300$; a mounts owed to Pool Corporation, Incorporated, a pool supply wholesaler, $$3,800$; note payable to the bank, $$5,300.$ Penny forecasts first$-$year sales of $$61,800,$ wages of $$24,300,$ cost of supplies used $$8,500,$ other administrative expenses of $$4,800,$ and income tax expense of $$4,300.$ She expects to pay herself a $$13,000$ dividend as the sole stockholder of the company.

If Penny's estimates are correct, what would the following first$-$year financial statements look like for Penny's Pool Service & Supply, Incorporated?

CON$1-1$ Part $1$

Required:

Prepare a summarized income statement for the current year.

PENNY'S POOL SERVICE & SUPPLY, INCORPORATED

Income Statement