Above is the Milestone that I am working on in Accounting Class, I am having an issue understanding how they came up with the figures for the A/R and Inventory numbers in the Pro Forma balance sheet. They state A/R turnover will be 4.0 and Inventory turnover will be 3.0, how are those figures calculated. The worksheet is also above stating the instructions for the milestone.
Drewel-Dawn-Feb 10, 2019 1039 PM PH Corrections - Microsoft Excel X Home Insert Page Layout Formulas Data Review View QuickBooks ?) Aa Colors to Width: Automatic Gridlines Headings A Fonts :1 Height: Automatic View View Themes O Effects Margins Orientation Size Print Breaks Background Print Titles Scale: 75% Print Bring to Send to Selection Align Group Rotate Area Print Front - B Back Pane Themes Page Setup Scale to Fit Sheet Options Arrange D22 fxx d M N 0 P Q S Peyton Approved Second Location Pro Forma Balance Sheet LAW NH As of December 31, 2018 Instructions Milestone 2 Assets Liabilities and Owners' Equity Current Assets: Current Liabilities: Cash 7,000.00 Accounts Payable 20,622.11 Accounts Receivable 65,705.64 Wages Payable 2,706.62 Baking Supplies 28,222.48 Interest Payable 169.17 Merchandise Inventory 229.27 Prepaid Rent 1,691.64 Prepaid Insurance 1,691.64 Misc. Supplies 136.39 Total Current Assets 104,677.06 Total Current Liabilities 23,497.90 Long Term Liabilities: Long Term/Fixed Assets: Notes Payable 20,000.00 Baking Equipment 15,000.00 Total Long Term Liabilities: 20,000.00 Accumulated Depreciation 2,142.86 Net Fixed assets 12,857.14 Total Liabilities: 43,497.90 Common Stock Retained Earnings 74,036.30 Total Equity 74,036.30 Total Assets 117,534.20 Total Liabilities & Equity 117,534.20 35 Notes: 36 A/B figured at 4 0 turns Cash Flow 2017 CF 2017 Revised Balance sheet 2015 8 Balance Sheet 2016 /Income Statement 2016 Ratio Analysis Milestone 2 Instructions Pro Forma IS Pro Forma BS Notes Ready J 85% + 6 O Ei e 2:01 PM 2/13/2019DrewEl - Dawn - Feb 10, 2019 7039 PM PH Corrections - Microsoft EXCEL Home* Insert\\ Page Layout| Formulas Data Review View Quick Books x \\ #`Colors * _ at Width : Automatic *\\ Gridlines| Headings* LA Fonts * ` Height : Automatic* |~ View\\ |~ view Themes \\0| Effects - \\ Margins Orientation Size Print Breaks Background Print \\960 01\\ Area *\\ Titles ` Scale :` [ Print | Print Bring to Send to Selection Align Group Rotate Front *\\ Back *\\ Fame Themes Page Setup Scale to Fit Sheet Options Arrange 239 5 G _M| N\\ R.\\ Peyton Approved Second Location Pro Forma Income Statement For Year Ending 12/31/2018 5 5 Bakery Sales $ 261, 8:58. 04 7 Merchandise Sales 964.51\\ 8| Total Revenues* $ 262, 822.5.5 }| Cost of Goods Sold - Baked 10 Cost of Goods Sold - Merchandise* $ 84 , 657.43 687 . 82 11 Total Cost of Goods Sold $ 85, 35.5.25 12 Gross Profit $ 17 7, 467. 30 13\\ 14 15 16 Operating Expenses." 17\\ 18 Rent EXPENSE $ 18,000. 00 19 Wages Expense* $ 75,000.00 20 Misc . Supplies Expense* $ 2, 400. 37 Business License Expense 1 , 6:36. 62 Misc . Expense 1, 091. 07 Depreciation EXPENSE 2, 142.85 Insurance Expense 872.86 Advertising Expense 1 , 239.79 25 Interest EXPENSE* 6:54.65 27\\ Telephone Expense* 392.78 28| Gain / Loss on Disposal of Equipment* 29 Total Operating Expenses :" $ 103, 4:31.00 30| 31 Net Income $ 74, 0.36.30 32 34\\ 35 Notes ." 3 5, Rent Finense is $ 1 {On on ner month \\~` Cash Flow 2017\\ CF 2017 Revised Balance sheet 2015 Balance Sheet 2015 Income Statement 2016 Ratio Analysis* one 2 Instructions Pro Forma IS * Pro Forma $.5 Notes | {2\\ Ready \\\\ | 85%6 (3)DrewEl - Dawn - Feb 10, 2019 1039 PM PH Corrections - Microsoft EXCEL Home* Insert \\Page Layout| Formulas Data Review View QuickBOOK's x \\ #`Colors * _ at Width :| 1 page Gridlines| Headings* ~ View\\ |~ view Themes { LA| Fonts* \\0| Effects *\\ \\ Margins Orientation\\ Size Print Breaks Background Print { \\ Height : 1 page Bring to Send to Selection Align Group Rotate* Area * Titles ` Scale :` \\6:496 [ Print | Print\\ Front *\\ Back *\\ Pane Themes Page Setup Scale to Fit Sheet Options\\ Arrange AL fox| Southern New Hampshire University B C D E G H N O S T V W X 28 Pro Forma Income Statement 29 Pro Forma Balance Sheet 30 31 32 33 34 PEYTON APPROVED PRO FORMA INFORMATION 35 The company is planning to open another location in 2018 . Prepare pro forma financials for 2018 for the new* 36 location using the following information :" 37 38 1 . Cost of leasing commercial space : $1, 50.0 per month . 39 2 . Cost of new equipment : $15 , 000 . Use straight line depreciation assuming a seven - year life . Use full year's* at depreciation for the first year . 42 3 . Cost of hiring and training new employees : three at $25 , 000 each for the first year . 43 4 . Except as noted in 5 , assets , current liabilities , sales , costs , and expenses are expected to be 80% of the Existing* 44 store ( from preliminary statements ) except no stock . Retained earnings = net income . 45 5 . Cash : 57, 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 stack will be issued . Retained earnings are to equal 40 net income . Additional financing of $5 , 000 will be long-term . Add remaining amount needed to balance into 47 49 50 51 52 53\\ 54\\ * * * #1 Cash Flow 2017 CF 2017 Revised Balance sheet 2015 Balance Sheet 2015 Income Statement 2016 Ratio Analysis\\ Milestone 2 Instructions* Pro Forma IS Pro Forma $.5 Notes| {2\\ Ready \\\\ELLI 10.0 96 ( ) CHIE #\\UDrewel-Dawn-Feb 10, 2019 1039 PM PH Corrections - Microsoft Excel X Home Insert Page Layout Formulas Data Review View QuickBooks ?) Aa Colors oJ Width: 1 page Gridlines Headings A Fonts :Height: 1 page View View Themes O Effects Margins Orientation Size Print Breaks Background Print Area Titles Scale: 100% Print Print Bring to Send to Selection Align Group Rotate Front - B Back Pane Themes Page Setup Scale to Fit Sheet Options Arrange F24 fx D G H M N Q U Peyton Approved Income Statement For Year Ended 12/31/2017 Bakery Sales $ 327,322.55 Merchandise Sales 1,205.64 Total Revenues 328,528.19 Cost of Goods Sold - Baked 105,834.29 Cost of Goods Sold - Merchandise 859.77 Total Cost of Goods Sold 106,694.06 Gross Profit 221,834.13 Operating Expenses: H Nmen Rent Expense 24,549.19 Wages Expense 10,670.72 Misc. Supplies Expense 3,000.46 Business License Expense 2,045.77 Misc. Expense 1,363.84 Depreciation Expense 677.86 Insurance Expense 1,091.08 Advertising Expense 1,549.74 Interest Expense 818.31 Telephone Expense 490.98 Loss on Disposal of Equipment 100.00 Total Operating Expenses: 46,357.95 Net Income 175,476.18 Instructions Instructions - Milestone 1 Trial Balance 2017 Balance Sheet 2017 /BS 2017 Revised Income Statement 2017 IS 2017 Revised Retained Earnings 2017 RE 2017 Revised /Cash Flow 2017 CF 201 Ready J 85% + O Ei me 9 2:04 PM 2/13/2019Drewel-Dawn-Feb 10, 2019 1039 PM PH Corrections - Microsoft Excel X Home Insert Page Layout Formulas Data Review View QuickBooks ?) Aa Colors to4 Width: 1 page Gridlines Headings A Fonts View View Themes Margins Orientation Size Print Breaks Background Print :Height: 1 page Scale: 82% Print Print Bring to Send to Selection Align Group Rotate spaHa o Area Titles Front - B Back Pane Themes Page Setup Scale to Fit Sheet Options Arrange G17 Margins Select the margin sizes for the D G M N 0 Q R U entire document or the current section. Peyton Approved Balance Sheet Press F1 for more help. As of December 31, 2017 Assets Liabilities and Owners' Equity Current Assets: Current Liabilities: Cash 68,520.04 Accounts Payable 23,437.11 Accounts Receivable 68,519.91 Customer Deposit 1,000.00 Other Receivable - Insurance 700.00 Wages Payable 3,383.28 Baking Supplies 18,681.70 Interest Payable 211.46 Merchandise Inventory 1,038.07 Consignment Inventory 200.00 Prepaid Rent 2,114.55 Prepaid Insurance 2,114.55 Misc. Supplies 170.49 Total Current Assets 162,059.31 Total Current Liabilities 28,031.85 Long Term Liabilities: Long Term/Fixed Assets: Notes Payable 5,000.00 Baking Equipment 12,000.00 Total Long Term Liabilities: 5,000.00 Accumulated Depreciation -406.44 Net Fixed assets 11,593.56 Total Liabilities: 33,031.85 Common Stock 20,000.00 Retained Earnings 120,621.02 Total Equity 140,621.02 Total Assets 173,652.87 Total Liabilities & Equity 173,652.87 Instructions Instructions - Milestone 1 Trial Balance 2017 Balance Sheet 2017 BS 2017 Revised Income Statement 2017 IS 2017 Revised Retained Earnings 2017 RE 2017 Revised Cash Flow 2017 CF 2010 Ready J 85% + O Ei me 9 2:04 PM 2/13/2019
