C. Evaluate impacts of company goals and finances for their implications on stockholder equity, using financial information to support claims.
D. Evaluate impacts of company goals and finances for their implications on retained earnings per share, using financial information to support claims.
E. Explain the impact of issuing preferred stock or debt for determining changes to equity structures.
F. Assess the impact of changes to current tax structure for articulating changes relevant to the company.
PEYTON APPROVED TRIAL BALANCE As of December 31, 2017 Adjusting anies Dr Dr Cr Cash 1488.999 34 1,488,999 34 5235.000 Marketable Securities 5,500,000 7,092 496 88 1,605.098 52 205,000 Accounts Receivable 7082.495.88 8aking Supplies Merchandise Inventory 1,605,098 52 128,152 63 71,877.07 128.152 63 71877 07 Prepaid Rent Prepaid insurance Misc. Supplies 207.834.14 207,834 14 17,647 42 250000 1,250,000 17,647 42 Land 250,000 Building Baking Equipment 1,250,000 2.254.140 4h 2.387.729 533 Accumulated Depreciaton- Patent Accounts Payable Wages Payble Interest Payable Current Poron of Bonds Payable Income Taxes Currently Payable Accrued Pension Liability Accrued Employees Health Insurance Lease Liablity 328.282 328.282 50,000 2.500 47 500 1,555,212 85 1555.212.85 250,203 31 250,203 31 21,888 22 21,888 22 1000.000 1,000,000 (2 1,042.118.16 375 1,042493 16 107,041.7 43718 91 108 589 533 107.041.7 43.718 91 106.589 533 -20,000 44 Dafemed Tax Liablity Bonds Payable Preferred Stock Common Stock |Beginning Retained eamings |Dvidends-Preferred 52.325.25 52,325.25 4.000,000 4000,000 500,000 1,750,000 500,000 1,750,000 2213,122 59 2213,122 59 50,000 50,000 Dividends Common 5,250,000 5250,000 Bakery Sales- 33.881.157.15 33.881.157.15 Merchandise Sales 124.795.8 124 7968 Cost of Goods Sold-Baked Cost of Goods Sold Merchandise Rent Expense Wages Expense Misc. Supplies Expense Repairs and Maintenance Business License Expense Misc. Expense Dapreciation Expense Insurance Expense Advertising Expense Interest Expense Telephone Expense Pension Expense Retired Employees Heath ins. 10,954 907 36 10,954,907 36 88.994.79 88994 79 1,576 731 95 1,556,731 95 2.604.526 23 2.604.526.23 23 224 56 263,224 56 47.353.06 (7h 20.353.05 211,757 65 211,757 65 141.171.08 91.171.08 634,520 112.937 69 16041349 634,520 112.937 69 160413 49 484.703 27 484,703 27 50,821.34 50,821 34 107 041.7 107.041.7 43,718 91 43,718.91 Patent Amortization 2.500 265.000 Unrealized GainLoss) on Marketable Securites Held for Sale 265,000 Income Taxes 4,168,847 622 4,168.472 622 375 Defemed tax Expanse 52,325 25 52,325 25 46666,780.082 46,666,780 08 674 550.393 674,550 393 46,956830476 46,956830473 To record Unrealized Loss on Marketable Securties mlestone 1 To adjust income taxes for comect efective rate $1.500 Meals permanent difference X 25% To record Defered taxes for timing diference on book mlestone 1 mlestone 1 s MACRS Depreciation 4 To record assets taken on leasse 209.301 106,589 533 mlestone 21 milestone 2 (5To record Srst lease payment and interest expense and depreciation expense To recond pension Liability To record health insurance lablity mlestone 2 (To capitalize repair of packing Machine To Record oost of patent by rectitying Miscellaneous Expense and amortizing patent for year Cost of Patent Amortzation 27,000 final fnal 50.000 2.500 ele Peyton Approved Balance Sheet As of December 31, 20xx Liabilities and Owners' Equity Assets Current Assets Cash Marketable Securities Current Liabilties 1,488 999 348 Accounts Payable Wages Payable Interest Payable Current Porion of Bonds Payable Income taxes oumenly payable 1555,212 85 5,500,000.00 250.203.31 21,888 22 Accounts Receivable Baking Supplies Merchandise Inventory 7.092 49688 1,605,098.52 1,000,000 128 152 63 1,042.118 16 Prepaid Rent Prepaid Insurance Misc. Supplies 71,877.07 207,834.14 17,647 42 Total Cumrent Assets Total Current Liabilities 16.112.105.00 3,869.422.54 Leng Term Liabilities Bonds Payable 10%, 20 year Long TermFixed Assets: Land Building Baking Equipment Accumulated Depreciation 4.000,000 250,000 1250.000 Total Long Term Liabilities: 4,000.000 2,254,140.00 -328,282.00 Total Liabilities: Net Fixed assets 3.425.858 7.869.422.54 Preferred Stock - (10,000 authorzed, 5000 issued, 10 %, $100 par value) Common Stock- (2,000,000 shares authorized, 1,750,000 issued, $1 par) Retained Eamings 500.000 1,750,000 9418 540 458 Total Equity 11.668.540.46 Tonal Assets 1.537,63 Total Liabilities & Equity 13.537.963. Peyton Approved Income Statement For Year Ended 12/31/20XX Bakery Sales Merchandise Sales 33,881,157.15 124,795.8 Total Revenues 34,005,952.95 Cost of Goods Sold- Baked 10,954,907.36 88,994.79 Cost of Goods Sold - Merchandise Total Cost of Goods Sold 11,043,902.15 Gross Profit 22.962.050.8 Operating Expenses: Rent Expense Wages Expense Misc. Supplies Expense Repairs and Maintenance Business License Expense 1,576,731.95 2,604,526.23 263,224.56 47,353.05 211,757.65 141,171.08 634,520 Misc. Expense Depreciation Expense Insurance Expense Advertising Expense Interest Expense Telephone Expense Total Operating Expenses: 112,937.69 160,413.49 484.703.27 50,821.34 6,288,160.31 Earnings before Income Tax 16,675,390.49 16,673,890.49 Income Taxes 4,168,472.623 4,168,847.623 Net Income 12,505,417.87 PEYTON APPROVED TRIAL BALANCE As of December 31, 2017 Adjusting entries Cr Dr Cr De Dr Cash 1,488,999.34 1488,999 Marketable Securities 5.500,000 265,000 5,235,0 Accounts Receivable Baking Supplies Merchandise Inventory 7,092.495.88 7,092.495 1,605,008. 128,152 71.877 207.834 17.647 1,605,098.52 128,152 63 Prepaid Rent 71,877.07 Prepaid Insurance Misc. Supplies 207.834.14 17,647.42 Land 250,000 250,0 Building Baking Equipment 1,250.0 1.250,000 6 589 533 2.387,729 5 2,254,140 (4) Accumulated Depreciation Patent Accounts Payable Wages Payable |Interest Payable Curent Portion of Bonds Payable | Income Taxes Currently Payable Accrued Pension Liability Accrued Employees Health Insurancee Lease Liability 328.282 50,000 () 47.5 (8) 2.500 1,555,212.85 250,203.31 21,888.221 1,000,000 1,042,118.16 375 (61 107.041.7 43.718 91 (6) (4) 000 (5) (3) 52.325.25 Deferred Tax Liability Bonds Payable Preferred Stock 4,000,000 500,000 1,750,000 2.213.122.59 Common Stock Beginning Retained eamings Dividends Preferred 50,000 50,0 Dividends Common Bakery Sales Merchandise Sales Cost of Goods Sold-Baked 5,250,000 5,250,0 33,881,157.15 124.795.8 10,954,907.36 10,954,907. 88,994 1556.731. Cost of Goods $old- Merchandise 88,994.79 Rent Expense Wages Expense Misc. Supplies Expense Repairs and Maintenance 1,576,731.95 (51 2,604,526.23 2604.526. 263,224.56 263,224. 47,353.05 (71 20,353. 211,757 Business License Expense 211,757.65 Misc. Expense Depreciation Expense Insurance Expense 141.171.08 91,171 (8) 634,520 634,5 112,937.69 112.937 Advertising Expense |Interest Expense Telephone Expense Pension Expense 160.413.49 160.413. 484,703.27 484,703. 50,821 50.821.34 (6) 107.041.7 107,041 Retired Employees Health Ins. 43,718. 43,718.91 (6) Patent Amortization (8) 2.5 Unrealized Gain/(Loss) on Marketable Securities Held for Sale 265,000 265,0 Income Taxos 4,168,472.622 375 4,168,847.6 52,325 Deferred tax Expense (3) 52.325.25 46.956,830 4 674.550 393 46.666.780.082 46,666,780.08 674,550.393 To record Unrealized Loss on Marketable Securtes To adjust income taxes for corect efective rate $1,500 Meals permanent difference X 25% (2h To record Defiered taxes for timing difference on book MOCRE Donronistin A Peyton Approved Balance Sheet As of December 31, 20XX Liabilities and Owners' Equity Assets Current Assets: Current Liabilities: Cash 1,488,999.34 Accounts Payable Wages Payable Interest Payable Current Portion of Bonds Payable Income taxes currently payable 1,555,212.85 Marketable Securities 250,203.31 21,888.22 1,000,000 5,500,000.00 Accounts Receivable 7,092,495.88 1,605,098.52 Baking Supplies Merchandise Inventory Prepaid Rent Prepaid Insurance Misc. Supplies 128,15263 1,042.118.16 71.877.07 207,834.14 17,647.42 Total Current Assets 16,112,105.00 Total Current Liabilities 3,869,422.54 Long Term Liabilities: Bonds Payable 10 %, 20 year Long Term/Fixed Assets: 4,000,000 Land 250,000 1,250,000 Building Baking Equipment Accumulated Depreciation 2,254,140.00 Total Long Term Liabilities: 4,000,000 -328,282.00 Net Fixed assets 3,425,858 Total Liabilities: 7,869,422.5 Preferred Stock-(10,000 authorized, 5,000 issued, 10 % , $100 par value) 500,000 Common Stock-(2,000,000 shares authorized, 1,750,000 issued, $1 par) Retained Earnings 1,750,000 9,418,540.458 11,668,540.4 Total Equity Total Assets Total Liabilities & Equity 19,537,96 19,537,963 Peyton Approved Income Statement For Year Ended 12/31/20XX Bakery Sales 33,881,157.15 Merchandise Sales 124,795.8 Total Revenues 34,005,952.95 10,954,907.36 88,994.79 Cost of Goods Sold Baked Cost of Goods Sold Merchandise Total Cost of Goods Sold 11,043,902.15 Gross Profit 22,962,050.8 Operating Expenses: Rent Expense Wages Expense Misc. Supplies Expense Repairs and Maintenance Business License Expense Misc. Expense Depreciation Expense Insurance Expense Advertising Expense Interest Expense 1,576,731.95 2,604,526.23 263,224.56 47,353.05 211,757.65 141,171.08 634,520 112,937.69 160,413.49 484,703.27 50,821.34 Telephone Expense Total Operating Expenses: 6,288,160.31 Earnings before Income Tax 16,673,890.49 16,675,390.49 4,168,472.623 4,168,847.623 Income Taxes 12,505,417.87 Net Income PEYTON APPROVED TRIAL BALANCE As of December 31, 2017 Adjusting anies Dr Dr Cr Cash 1488.999 34 1,488,999 34 5235.000 Marketable Securities 5,500,000 7,092 496 88 1,605.098 52 205,000 Accounts Receivable 7082.495.88 8aking Supplies Merchandise Inventory 1,605,098 52 128,152 63 71,877.07 128.152 63 71877 07 Prepaid Rent Prepaid insurance Misc. Supplies 207.834.14 207,834 14 17,647 42 250000 1,250,000 17,647 42 Land 250,000 Building Baking Equipment 1,250,000 2.254.140 4h 2.387.729 533 Accumulated Depreciaton- Patent Accounts Payable Wages Payble Interest Payable Current Poron of Bonds Payable Income Taxes Currently Payable Accrued Pension Liability Accrued Employees Health Insurance Lease Liablity 328.282 328.282 50,000 2.500 47 500 1,555,212 85 1555.212.85 250,203 31 250,203 31 21,888 22 21,888 22 1000.000 1,000,000 (2 1,042.118.16 375 1,042493 16 107,041.7 43718 91 108 589 533 107.041.7 43.718 91 106.589 533 -20,000 44 Dafemed Tax Liablity Bonds Payable Preferred Stock Common Stock |Beginning Retained eamings |Dvidends-Preferred 52.325.25 52,325.25 4.000,000 4000,000 500,000 1,750,000 500,000 1,750,000 2213,122 59 2213,122 59 50,000 50,000 Dividends Common 5,250,000 5250,000 Bakery Sales- 33.881.157.15 33.881.157.15 Merchandise Sales 124.795.8 124 7968 Cost of Goods Sold-Baked Cost of Goods Sold Merchandise Rent Expense Wages Expense Misc. Supplies Expense Repairs and Maintenance Business License Expense Misc. Expense Dapreciation Expense Insurance Expense Advertising Expense Interest Expense Telephone Expense Pension Expense Retired Employees Heath ins. 10,954 907 36 10,954,907 36 88.994.79 88994 79 1,576 731 95 1,556,731 95 2.604.526 23 2.604.526.23 23 224 56 263,224 56 47.353.06 (7h 20.353.05 211,757 65 211,757 65 141.171.08 91.171.08 634,520 112.937 69 16041349 634,520 112.937 69 160413 49 484.703 27 484,703 27 50,821.34 50,821 34 107 041.7 107.041.7 43,718 91 43,718.91 Patent Amortization 2.500 265.000 Unrealized GainLoss) on Marketable Securites Held for Sale 265,000 Income Taxes 4,168,847 622 4,168.472 622 375 Defemed tax Expanse 52,325 25 52,325 25 46666,780.082 46,666,780 08 674 550.393 674,550 393 46,956830476 46,956830473 To record Unrealized Loss on Marketable Securties mlestone 1 To adjust income taxes for comect efective rate $1.500 Meals permanent difference X 25% To record Defered taxes for timing diference on book mlestone 1 mlestone 1 s MACRS Depreciation 4 To record assets taken on leasse 209.301 106,589 533 mlestone 21 milestone 2 (5To record Srst lease payment and interest expense and depreciation expense To recond pension Liability To record health insurance lablity mlestone 2 (To capitalize repair of packing Machine To Record oost of patent by rectitying Miscellaneous Expense and amortizing patent for year Cost of Patent Amortzation 27,000 final fnal 50.000 2.500 ele Peyton Approved Balance Sheet As of December 31, 20xx Liabilities and Owners' Equity Assets Current Assets Cash Marketable Securities Current Liabilties 1,488 999 348 Accounts Payable Wages Payable Interest Payable Current Porion of Bonds Payable Income taxes oumenly payable 1555,212 85 5,500,000.00 250.203.31 21,888 22 Accounts Receivable Baking Supplies Merchandise Inventory 7.092 49688 1,605,098.52 1,000,000 128 152 63 1,042.118 16 Prepaid Rent Prepaid Insurance Misc. Supplies 71,877.07 207,834.14 17,647 42 Total Cumrent Assets Total Current Liabilities 16.112.105.00 3,869.422.54 Leng Term Liabilities Bonds Payable 10%, 20 year Long TermFixed Assets: Land Building Baking Equipment Accumulated Depreciation 4.000,000 250,000 1250.000 Total Long Term Liabilities: 4,000.000 2,254,140.00 -328,282.00 Total Liabilities: Net Fixed assets 3.425.858 7.869.422.54 Preferred Stock - (10,000 authorzed, 5000 issued, 10 %, $100 par value) Common Stock- (2,000,000 shares authorized, 1,750,000 issued, $1 par) Retained Eamings 500.000 1,750,000 9418 540 458 Total Equity 11.668.540.46 Tonal Assets 1.537,63 Total Liabilities & Equity 13.537.963. Peyton Approved Income Statement For Year Ended 12/31/20XX Bakery Sales Merchandise Sales 33,881,157.15 124,795.8 Total Revenues 34,005,952.95 Cost of Goods Sold- Baked 10,954,907.36 88,994.79 Cost of Goods Sold - Merchandise Total Cost of Goods Sold 11,043,902.15 Gross Profit 22.962.050.8 Operating Expenses: Rent Expense Wages Expense Misc. Supplies Expense Repairs and Maintenance Business License Expense 1,576,731.95 2,604,526.23 263,224.56 47,353.05 211,757.65 141,171.08 634,520 Misc. Expense Depreciation Expense Insurance Expense Advertising Expense Interest Expense Telephone Expense Total Operating Expenses: 112,937.69 160,413.49 484.703.27 50,821.34 6,288,160.31 Earnings before Income Tax 16,675,390.49 16,673,890.49 Income Taxes 4,168,472.623 4,168,847.623 Net Income 12,505,417.87 PEYTON APPROVED TRIAL BALANCE As of December 31, 2017 Adjusting entries Cr Dr Cr De Dr Cash 1,488,999.34 1488,999 Marketable Securities 5.500,000 265,000 5,235,0 Accounts Receivable Baking Supplies Merchandise Inventory 7,092.495.88 7,092.495 1,605,008. 128,152 71.877 207.834 17.647 1,605,098.52 128,152 63 Prepaid Rent 71,877.07 Prepaid Insurance Misc. Supplies 207.834.14 17,647.42 Land 250,000 250,0 Building Baking Equipment 1,250.0 1.250,000 6 589 533 2.387,729 5 2,254,140 (4) Accumulated Depreciation Patent Accounts Payable Wages Payable |Interest Payable Curent Portion of Bonds Payable | Income Taxes Currently Payable Accrued Pension Liability Accrued Employees Health Insurancee Lease Liability 328.282 50,000 () 47.5 (8) 2.500 1,555,212.85 250,203.31 21,888.221 1,000,000 1,042,118.16 375 (61 107.041.7 43.718 91 (6) (4) 000 (5) (3) 52.325.25 Deferred Tax Liability Bonds Payable Preferred Stock 4,000,000 500,000 1,750,000 2.213.122.59 Common Stock Beginning Retained eamings Dividends Preferred 50,000 50,0 Dividends Common Bakery Sales Merchandise Sales Cost of Goods Sold-Baked 5,250,000 5,250,0 33,881,157.15 124.795.8 10,954,907.36 10,954,907. 88,994 1556.731. Cost of Goods $old- Merchandise 88,994.79 Rent Expense Wages Expense Misc. Supplies Expense Repairs and Maintenance 1,576,731.95 (51 2,604,526.23 2604.526. 263,224.56 263,224. 47,353.05 (71 20,353. 211,757 Business License Expense 211,757.65 Misc. Expense Depreciation Expense Insurance Expense 141.171.08 91,171 (8) 634,520 634,5 112,937.69 112.937 Advertising Expense |Interest Expense Telephone Expense Pension Expense 160.413.49 160.413. 484,703.27 484,703. 50,821 50.821.34 (6) 107.041.7 107,041 Retired Employees Health Ins. 43,718. 43,718.91 (6) Patent Amortization (8) 2.5 Unrealized Gain/(Loss) on Marketable Securities Held for Sale 265,000 265,0 Income Taxos 4,168,472.622 375 4,168,847.6 52,325 Deferred tax Expense (3) 52.325.25 46.956,830 4 674.550 393 46.666.780.082 46,666,780.08 674,550.393 To record Unrealized Loss on Marketable Securtes To adjust income taxes for corect efective rate $1,500 Meals permanent difference X 25% (2h To record Defiered taxes for timing difference on book MOCRE Donronistin A Peyton Approved Balance Sheet As of December 31, 20XX Liabilities and Owners' Equity Assets Current Assets: Current Liabilities: Cash 1,488,999.34 Accounts Payable Wages Payable Interest Payable Current Portion of Bonds Payable Income taxes currently payable 1,555,212.85 Marketable Securities 250,203.31 21,888.22 1,000,000 5,500,000.00 Accounts Receivable 7,092,495.88 1,605,098.52 Baking Supplies Merchandise Inventory Prepaid Rent Prepaid Insurance Misc. Supplies 128,15263 1,042.118.16 71.877.07 207,834.14 17,647.42 Total Current Assets 16,112,105.00 Total Current Liabilities 3,869,422.54 Long Term Liabilities: Bonds Payable 10 %, 20 year Long Term/Fixed Assets: 4,000,000 Land 250,000 1,250,000 Building Baking Equipment Accumulated Depreciation 2,254,140.00 Total Long Term Liabilities: 4,000,000 -328,282.00 Net Fixed assets 3,425,858 Total Liabilities: 7,869,422.5 Preferred Stock-(10,000 authorized, 5,000 issued, 10 % , $100 par value) 500,000 Common Stock-(2,000,000 shares authorized, 1,750,000 issued, $1 par) Retained Earnings 1,750,000 9,418,540.458 11,668,540.4 Total Equity Total Assets Total Liabilities & Equity 19,537,96 19,537,963 Peyton Approved Income Statement For Year Ended 12/31/20XX Bakery Sales 33,881,157.15 Merchandise Sales 124,795.8 Total Revenues 34,005,952.95 10,954,907.36 88,994.79 Cost of Goods Sold Baked Cost of Goods Sold Merchandise Total Cost of Goods Sold 11,043,902.15 Gross Profit 22,962,050.8 Operating Expenses: Rent Expense Wages Expense Misc. Supplies Expense Repairs and Maintenance Business License Expense Misc. Expense Depreciation Expense Insurance Expense Advertising Expense Interest Expense 1,576,731.95 2,604,526.23 263,224.56 47,353.05 211,757.65 141,171.08 634,520 112,937.69 160,413.49 484,703.27 50,821.34 Telephone Expense Total Operating Expenses: 6,288,160.31 Earnings before Income Tax 16,673,890.49 16,675,390.49 4,168,472.623 4,168,847.623 Income Taxes 12,505,417.87 Net Income
