1. A supplier shipped $3,000 of ingredients on 12/29/17. Peyton receives an invoice for the goods, as well as a bill for freight 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 $1,000 deposit from Pet Globe for product to be shipped by Peyton in the second week of January. 4. On 12/03/2017, a mixer with a cost of $2,000, accumulated depreciation $1,200, was destroyed by a forklift. As of 12/23/17, 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. The company is planning to open another location in 2018. Prepare pro forma financials for 2018 for he new location using the following information: Overview: You just began a position as a financial accountant at Peyton Approved. In this role, your first task is to prepare the company's financials for the year-end audit. Additionally, the company is interested in expanding its business within the next year. They would like your support in assessing their ability to meet their goals. Refer to the data below and use the Final Project Workbook that includes the income statement, balance sheet, retained earnings statement and cash flow statement to complete the final project and associated milestones. Peyton Approved Financial Data: Preliminary Financial Statements have already been prepared (2017 statements in the Final Project Workbook). Final adjusting entries have not yet been made. See table for possible adjustments that indicate what will be recorded at 12/31/17 (fiscal year end). Use the following to complete year-to-year documentation and notes for managing depreciation, inventory, and long-term debt. any is planning to open another location in 2018. Prepare pro forma financials for 2018 for the new location using the following information: Cost of leasing commercial space: $1,500 per month. Cost of new equipment: $15,000, purchased with a long-term note. Use straight line depreciation assuming a seven-year life, no residual value. Use full year's depreciation for the first year. Cost of hiring and training new employees: three at $25,000 each for the first year. Except as noted below, assets, current liabilities, sales, costs, and expenses are expected to be 80% of the existing store (from preliminary statements) except no stock. Retained earnings = net income. Cash: $7,000. Accounts receivable amount to 4.0 turns (accounts receivable turnover will be 4.0); inventory amount to show 3.0 turns (inventory turnover will be 3.0). No stock will be issued. Retained earnings are to equal net income. Additional financing of $5,000 will be long-term. Add remaining amount needed to balance into accounts payable. For notes to the financial statements and Management Analysis Memo, consider the following: Peyton Approved uses the following accounting practices: Inventory: Periodic, LIFO for both baking and merchandise For notes to the financial statements and Management Analysis Memo, consider the following: Peyton Approved uses the following accounting practices: Inventory: Periodic, LIFO for both baking and merchandise Equipment: Straight line method used for equipment Business Financing Information: Use this information to calculate interest rates and insurance information, and to assess their impact on the company's financial obligations: 6% interest note payable was made on Jan 31, 2017, and is due Feb 1, 2019. 5-year loan was made on June 1, 2016. Terms are 7.5% annual rate, interest only until due date. Insurance: Annual policy covers 12 months, purchased in February, covering March 2017 to February 2018. No monthly adjustments have been made. PLEASE HELP ME WITH THE CASH FLOWS WORKSHEET. Net Income Depreciation Expense Statement of cash Flow For Year Ended 12/31/2017 $ 175,576.18 677.86 Increase in Accounts Receivable Increase in Baking Supplies Statement of cash Flow For Year Ended 12/31/2017 Depreciation Expense Net Income 176,254.04 (25,886.91) (8,187.84) (443.10) Increase in Merchandise inventory Increase in Prepaid Rent (449.55) Increase in Prepaid Insurance (1,004.55) Increase in Misc. Supplies (114.99) Increase in Accounts Payable 3,292.11 Increase in Wages Payable 1,850.48 Increase in Interest Payable 44.96 Operating Cash Flow 145,354.65 Cash Flow from Investments Equipment Purchases 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 Operating Cash Flow Cash Flow from Investments Equipment Purchases Cash Flow from Investments Cash Flow from Financing Repayment of Note Payable Dividends Paid (6,000.00) Cash Flow from Investments (6,000.00) Cash Flow from Financing Repayment of Note Payable Dividends Paid (10,000.00) (105,000.00) Cash Flow from Financing (115,000.00) Net Cash Flow 24,354.65 Net Cash Flow Beginning Cash 43,165.39 Ending Cash 67,520.04 Beginning Cash Ending Cash Cash Flow from Financing PEYTON APPROVED TRIAL BALANCE As of December 31, 2017 Unadjusted trial balance Adjusting entries Adjusted trial balance Dr Cr ref Dr Cr ref Cash 67,520.04 1,000.00 Dr 68,520.04 Cr Accounts Receivable 68,519.91 68,519.91 Other Receivable - Insurance Baking Supplies 15,506.70 700.00 3,000.00 700.00 18,506.70 Merchandise Inventory 1,238.07 200.00 1,038.07 Consignment Inventory 200.00 Prepaid Rent 2,114.55 200.00 2,114.55 Prepaid Insurance 2,114.55 2,114.55 Misc. Supplies 170.49 170.49 Baking Equipment 14,000.00 2,000.00 12,000.00 Accumulated Depreciation 1,606.44 1,200.00 Customer Deposit 1,000.00 406.44 1,000.00 Accounts Payable 20,262.11 3,175.00 23,437.11 Wages Payable Interest Payable Notes Payable 3,383.28 3,383.28 211.46 211.46 5,000.00 5,000.00 Common Stock 20,000.00 20,000.00 Beginning Retained earnings 50,144.84 50,144.84 Dividends 105,000.00 105,000.00 Bakery Sales 327,322.55 327,322.55 Merchandise Sales 1,205.64 1,205.64 Cost of Goods Sold - Baked 105,834.29 105,834.29 Cost of Goods Sold - Merchandise 859.77 859.77 Rent Expense 24,549.19 24,549.19 Wages Expense 10,670.72 10,670.72 Misc. Supplies Expense 3,000.46 3,000.46 Business License Expense 2,045.77 2,045.77 Misc. Expense 1,363.84 175.00 1,538.84 Depreciation Expense 677.86 677.86 Insurance Expense 1,091.08 1,091.08 Advertising Expense 1,549.74 1,549.74 Interest Expense 818.31 818.31 Telephone Expense 490.98 490.98 Gain/Loss on disposal of equipment 429,136.32 429,136.32 100.00 6,375.00 100.00 6,375.00 432,111.32 432,111.32