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 following amounts for the first year of operations, ending December 31, 2015:Cash on hand and in the bank $2,150Amounts due from customers from spa treatments 1,780Building and equipment 70,000Amounts owed to beauty supply outlets for spa equipment 4,660Notes payable to a local bank 38,870Cash dividends 2,000Sales revenues 40,000Wages 24,000Supplies used up 7,000Office expenses 5,000Income taxes 1,600Required:1. Based on Nicole's estimates, prepare a forecast Income Statement for Nicole's Getaway Spa for the year ended December 31, 2015.2. Prepare a forecast Statement of Retained Earnings for Nicole's Getaway Spa for the year ended December 31, 2015.3. Prepare a forecast 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?

1. consider a two-firm industry. firm 1 (the incumbent) chooses a level of output qı. firm 2 (the potential entrant) observes qı and then chooses its level of output q2. the demand for the product is p 100 q, where q is the total output sold by the two firms which equals qi +q2. assume that the marginal cost of each firm is zero. a) find the subgame perfect equilibrium levels of qi and q2 keeping in mind that firm 1 chooses qi first and firm 2 observes qi and chooses its q2. find the profits of the two firms-n1 and t2- in the subgame perfect equilibrium. how do these numbers differ from the cournot equilibrium? b) for what level of qi would firm 2 be deterred from entering? would a rational firm 1 have an incentive to choose this level of qi? which entry condition does this market have: blockaded, deterred, or accommodated? now suppose that firm 2 has to incur a fixed cost of entry, f> 0. c) for what values of f will entry be blockaded? d) find out the entry deterring level of q, denoted by q1', a expression for firm l's profit, when entry is deterred, as a function of f. for what values of f would firm 1 use an entry deterring strategy?