Approved Second Location Pro Forma Balance Sheet Paper I will need milestone 1 & 2 done. all the instructions can be found in the workbook. MILESTONE 1 (Du

Approved Second Location Pro Forma Balance Sheet Paper I will need milestone 1 & 2 done. all the instructions can be found in the workbook. MILESTONE 1 (Due in Module 3)
For full instructions see Instructions
Milestone 1 page
MILESTONE 2 (Due in Module 5)
For full instructions see Instructions
Milestone 2 page
Instructions Milestone 1
1.
Trial Balance
Using the Peyton Approved financial data,
create:
Adjusting Entries
Adjusted Trial Balance
2.
1.
Pro Forma Financial
Statements
Using the given Pro Forma information,
create:
Pro Forma Income Statement
Pro Forma Balance Sheet
Revised Financial Statements
Using the Trial Balance and Preliminary
financial statements, prepare:
Revised Balance Sheet
Revised Income Statement
Revised Retained Earnings Statement
Revised Statement of Cash Flows
3.
Instructions Milestone 2
Ratio Analysis
Using the financial statements from 2015,
2016, and revised 2017, calculate the
following ratios:
Current Ratio (Working Capital )
Quick Ratio
A/R Turnover
Inventory Turnover
Gross margin
Return on Sales
Return on Equity
Return on Assets
Remember the written portion of the
Milestone! See the Milestone 2
Assignment Guidelines and Rubric
document.
Remember the written portion of the
Milestone! See the Milestone 1
Assignment Guidelines and Rubric
document.
Module 5)
0
INSTRUCTIONS FOR MILESTONE 1 (Due Module 3)
IMPORTANT NOTE:
Make sure to completely review the Rubric for Milestone 1
Use the data from this Milestone and begin working on your final presentation due in Final Project (Module 7)
ITEMS TO COMPLETE FOR THIS MILESTONE (Blue Tabs) :
GENERAL
You just began a position as a financial accountant at Peyton Approved. In this role, your first task is to prepare the company’
for the year-end audit. Additionally, the company is interested in expanding its business within the next year. They would like
support in assessing their ability to meet their goals.
TRIAL BALANCE 2017 TAB
Using the Peyton Approved financial data (see bottom of page):
Create the necessary adjusting journal entries. Use the REF column to reference the entry to each event
Complete the adjusted trial balance
REVISED FINANCIAL STATEMENTS
Using the preliminary financial statements (yellow tabs) and the Trial Balance 2017, prepare the following statements:
Balance Sheet (BS 2017 Revised tab)
Income Statement (IS 2017 Revised tab)
Retained Earnings Statement (RE 2017 Revised tab)
Statement of Cash Flows (CF 2017 Revised tab)
RATIO ANALYSIS
Using the revised 2017 financial statements, 2016 financial statements (orange tabs), and 2015 financial statements (o
prepare a ratio analysis with the following ratios:
Current Ratio (Working Capital )
Quick Ratio
A/R Turnover
Inventory Turnover
Gross margin
Return on Sales
Return on Equity
Return on Assets
PEYTON APPROVED FINANCIAL DATA
Preliminary Financial Statements have already been prepared (2017 statements in the Final Project Workbook). F
entries have not yet been made. See table for possible adjustments that indicate what will be recorded at 12/31/1
end). Use the following to complete year-to-year documentation and notes for managing depreciation, inventory,
term debt.
1. A supplier shipped $3,000 of ingredients on 12/29/17. Peyton receives an invoice for the goods, as well as a bil
for $175, all dated 12/29/17. Goods were shipped FOB supplier’s warehouse.
2. At 12/31/17, Peyton has $200 worth of merchandise on consignment at Bruno’s House of Bacon.
3. On 12/23/17, Peyton received a $1,000 deposit from Pet Globe for product to be shipped by Peyton in the seco
January.
4. On 12/03/2017, a mixer with cost of $2,000, accumulated depreciation $1,200, was destroyed by a forklift. As o
insurance company has agreed to pay $700 in January, 2018, for accidental destruction.
5. Note about later borrowing financials will show loan from parents repaid and use of bank financing.
ect (Module 7)
s to prepare the company’s financials
next year. They would like your
ry to each event
the following statements:
15 financial statements (orange tabs),
HOME
nal Project Workbook). Final adjusting
will be recorded at 12/31/17 (fiscal year
g depreciation, inventory, and long-
the goods, as well as a bill for freight
se of Bacon.
pped by Peyton in the second week of
estroyed by a forklift. As of 12/23/17,
ank financing.
PEYTON APPROVED
TRIAL BALANCE
As of December 31, 2017
Cash
Accounts Receivable
Other Receivable – Insurance
Baking Supplies
Merchandise Inventory
Consignment Inventory
Prepaid Rent
Prepaid Insurance
Misc. Supplies
Baking Equipment
Accumulated Depreciation
Customer Deposit
Accounts Payable
Wages Payable
Interest Payable
Notes Payable
Common Stock
Beginning Retained earnings
Dividends
Bakery Sales
Merchandise Sales
Cost of Goods Sold – Baked
Cost of Goods Sold – Merchandise
Rent Expense
Wages Expense
Misc. Supplies Expense
Business License Expense
Misc. Expense
Depreciation Expense
Insurance Expense
Advertising Expense
Interest Expense
Telephone Expense
Gain/Loss on disposal of equipment
Unadjusted trial balance
Dr
Cr
67,520.04
68,519.91
15,506.70
1,238.07
2,114.55
2,114.55
170.49
14,000.00
1,606.44
20,262.11
3,383.28
211.46
5,000.00
20,000.00
50,144.84
105,000.00
327,322.55
1,205.64
105,834.29
859.77
24,549.19
10,670.72
3,000.46
2,045.77
1,363.84
677.86
1,091.08
1,549.74
818.31
490.98
429,136.32
429,136.32
ref
ON APPROVED
L BALANCE
cember 31, 2017
Instructions
Milestone 1
Adjusting entries
Dr
Cr
ref
Adjusted trial balance
Dr
Cr
67,520.04
68,519.91
15,506.70
1,238.07
2,114.55
2,114.55
170.49
14,000.00
1,606.44
20,262.11
3,383.28
211.46
5,000.00
20,000.00
50,144.84
105,000.00
327,322.55
1,205.64
105,834.29
859.77
24,549.19
10,670.72
3,000.46
2,045.77
1,363.84
677.86
1,091.08
1,549.74
818.31
490.98
–
–
429,136.32
429,136.32
Preliminary
Peyton Approved
Balance Sheet
As of December 31, 2017
Assets
Current Assets:
Cash
Accounts Receivable
Baking Supplies
Merchandise Inventory
Prepaid Rent
Prepaid Insurance
Misc. Supplies
Liabilities
67,520.04
68,519.91
15,506.70
1,238.07
2,114.55
2,114.55
170.49
Total Current Assets
Long Term/Fixed Assets:
Baking Equipment
Accumulated Depreciation
Net Fixed assets
Total Assets:
157,184.31
14,000.00
-1,606.44
12,393.56
169,577.87
oved
eet
31, 2017
Liabilities and Owners’ Equity
Current Liabilities:
Accounts Payable
20,262.11
Wages Payable
3,383.28
Interest Payable
211.46
Total Current Liabilities
23,856.85
Long Term Liabilities:
Notes Payable
Total Long Term Liabilities:
5,000.00
Total Liabilities:
Common Stock
Retained Earnings
5,000.00
28,856.85
20,000.00
120,721.02
Total Equity
140,721.02
Total Liabilities & Equity
169,577.87
Peyton Approved
Balance Sheet
As of December 31, 2017
d
2017
Instructions
Milestone 1
Preliminary
Peyton Approved
Income Statement
For Year Ended 12/31/2017
Bakery Sales
Merchandise Sales
Total Revenues
Cost of Goods Sold – Baked
Cost of Goods Sold – Merchandise
Total Cost of Goods Sold
Gross Profit
$
327,322.55
1,205.64
328,528.19
105,834.29
859.77
106,694.06
221,834.13
Operating Expenses:
Rent Expense
Wages Expense
Misc. Supplies Expense
Business License Expense
Misc. Expense
Depreciation Expense
Insurance Expense
Advertising Expense
Interest Expense
Telephone Expense
Total Operating Expenses:
Net Income
24,549.19
10,670.72
3,000.46
2,045.77
1,363.84
677.86
1,091.08
1,549.74
818.31
490.98
46,257.95
175,576.18
Peyton Approved
Income Statement
For Year Ended 12/31/2017
Instructions
Milestone 1
Preliminary
Peyton Approved
Statement of Retained Earnings
For Year Ended 12/31/2017
Beginning Balance:
plus Net Income
$ 50,144.84
175,576.18
less Dividends:
Ending Balance
105,000.00
$ 120,721.02
Peyton Approved
Statement of Retained Earnings
For Year Ended 12/31/2017
Instructions
Milestone 1
Instructions
Milestone 1
Preliminary
Peyton Approved
Statement of cash Flow
For Year Ended 12/31/2017
Net Income
Depreciation Expense
$ 175,576.18
677.86
176,254.04
Increase in Accounts Receivable
Increase in Baking Supplies
Increase in Merchandise inventory
Increase in Prepaid Rent
Increase in Prepaid Insurance
Increase in Misc. Supplies
Increase in Accounts Payable
Increase in Wages Payable
Increase in Interest Payable
(25,886.91)
(8,187.84)
(443.10)
(449.55)
(1,004.55)
(114.99)
3,292.11
1,850.48
44.96
Operating Cash Flow
Cash Flow from Investments
Equipment Purchases
(6,000.00)
Cash Flow from Investments
Cash Flow from Financing
Repayment of Note Payable
Dividends Paid
Cash Flow from Financing
Net Cash Flow
Beginning Cash
Ending Cash
(10,000.00)
(105,000.00)
145,354.65
(6,000.00)
(115,000.00)
24,354.65
43,165.39
67,520.04
Peyton Approved
Statement of cash Flow
For Year Ended 12/31/2017
0
Instructions
Milestone 1
Peyton Approved
Balance Sheet
As of December 31, 2015
Assets
Current Assets:
Cash
Accounts Receivable
Baking Supplies
Merchandise Inventory
Prepaid Rent
Prepaid Insurance
Misc. Supplies
Liabilities and Owners’
Current Liabilities:
Accounts Payable
Wages Payable
Interest Payable
31507.58
35118.97
8042.23
580.27
1215.32
810.21
40.51
Total Current Assets
Long Term/Fixed Assets:
Baking Equipment
6000
Accumulated Depreciation -677.79
Net Fixed assets
77,315.09
Total Current Liabilities
Long Term Liabilities:
Notes Payable
Total Long Term Liabilities:
5,322.21
Total Liabilities:
Common Stock
Retained Earnings
Total Equity
Total Assets:
82,637.30
Total Liabilities & Equity
Liabilities and Owners’ Equity
iabilities:
15086.84
1118.83
121.53
rent Liabilities
16,327.20
m Liabilities:
10,000.00
g Term Liabilities:
10,000.00
26,327.20
20,000.00
36,310.10
bilities & Equity
56,310.10
82,637.30
Peyton Approved
Balance Sheet
As of December 31, 2016
Assets
Current Assets:
Cash
Accounts Receivable
Baking Supplies
Merchandise Inventory
Prepaid Rent
Prepaid Insurance
Misc. Supplies
Liabilities and
43,165.39
42,633.00
7,318.86
794.97
1,665.00
1,110.00
55.50
Total Current Assets
Long Term/Fixed Assets:
Baking Equipment
Accumulated Depreciation
Net Fixed assets
Total Assets:
96,742.72
8,000.00
-928.58
7,071.42
103,814.14
proved
Sheet
er 31, 2016
Liabilities and Owners’ Equity
Current Liabilities:
Accounts Payable
16,970.00
Wages Payable
1,532.80
Interest Payable
166.50
Total Current Liabilities
Long Term Liabilities:
Notes Payable
Total Long Term Liabilities:
18,669.30
15,000.00
15,000.00
Total Liabilities:
Common Stock
Retained Earnings
Total Equity
Total Liabilities & Equity
33,669.30
20,000.00
50,144.84
70,144.84
103,814.14
Peyton Approved
Income Statement
For Year Ended 12/31/2016
Bakery Sales
Merchandise Sales
Total Revenues
Cost of Goods Sold – Baked
Cost of Goods Sold – Merchandise
Total Cost of Goods Sold
Gross Profit
214,256.48
770.76
215,027.24
73,159.59
549.64
73,709.23
141,818.01
Operating Expenses:
Rent Expense
Wages Expense
Misc. Supplies Expense
Business License Expense
Misc. Expense
Depreciation Expense
Insurance Expense
Advertising Expense
Interest Expense
Telephone Expense
Total Operating Expenses:
Net Income
15,694.23
6,821.76
1,668.18
1,307.85
871.9
433.36
697.52
740.74
523.14
313.88
29,072.56
112,745.45
2017
Current Ratio (Working Capital )
Quick Ratio
A/R Turnover
Inventory Turnover
Gross margin
Return on Sales
Return on Equity
Return on Assets
2016
Instructions
Milestone 1
Southern New Hampshire University
0
INSTRUCTIONS FOR MILESTONE 2 (Due Module 5)
IMPORTANT NOTE:
Make sure to completely review the Rubric for Milestone 2
Use the data from Milestone 1 and this Milestone to finalize your final project due in Final Project (Module 7)
ITEMS TO COMPLETE FOR THIS MILESTONE (Green Tabs) :
GENERAL
Use information from Milestone 1 and the plan to open a new location (see bottom of page) for your statements
PRO FORMA FINANCIAL STATEMENTS
Prepare the following Pro Forma Financial Statements for the proposed new location (pro forma statements in this
case are budgeted statements for 2018 based on the new location scenario at the bottom of the page)
Pro Forma Income Statement
Pro Forma Balance Sheet
PEYTON APPROVED PRO FORMA INFORMATION
The company is planning to open another location in 2018 . Prepare pro forma financials for 2018 for the new loca
the following information:
1. Cost of leasing commercial space: $1,500 per month.
2. Cost of new equipment: $15,000. Use straight line depreciation assuming a seven-year life. Use full year’s depr
the first year.
3. Cost of hiring and training new employees: three at $25,000 each for the first year.
4. Except as noted in 5, assets, current liabilities, sales, costs, and expenses are expected to be 80% of the existing
preliminary statements) except no stock. Retained earnings = net income.
5. Cash: $7,000. Accounts receivable amount to 4.0 turns (accounts receivable turnover will be 4.0); inventory am
3.0 turns (inventory turnover will be 3.0). No stock will be issued. Retained earnings are to equal net income. Addi
financing of $5,000 will be long-term. Add remaining amount needed to balance into accounts payable.
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ct (Module 7)
your statements
rma statements in this
the page)
s for 2018 for the new location using
ar life. Use full year’s depreciation for
d to be 80% of the existing store (from
will be 4.0); inventory amount to show
to equal net income. Additional
counts payable.
Peyton Approved Second Location
Pro Forma Income Statement
For Year Ending 12/31/2018
d Location
atement
1/2018
Instructions
Milestone 2
Peyton Approved Second Location
Pro Forma Balance Sheet
As of December 31, 2018
d Location
Sheet
2018
Instructions
Milestone 2

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