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Can someone help me out with this problem? A. Create appropriate notes as year-to-year documentation for managing depreciation, supplies, and inventory. Peyton Approved Second Location

Can someone help me out with this problem?

A. Create appropriate notes as year-to-year documentation for managing depreciation, supplies, and inventory.

Peyton Approved Second Location

Pro Forma Income Statement For Year Ending 12/31/2018 Bakery Sales $ 261,858.00 Merchandise Sales 965.00 Total Revenues 262,823.00 Cost of Goods Sold - Baked 84,667.00 Cost of Goods Sold - Merchandise 688.00 Total Cost of Goods Sold 85,355.00 Gross Profit 177,468.00 Operating Expenses: Rent Expense 18,000.00 Wages Expense 75,000.00 Misc. Supplies Expense 2,400.00 Business License Expense 1,637.00 Misc. Expense 1,231.00 Depreciation Expense 2,143.00 Insurance Expense 1,269.00 Advertising Expense 1,240.00 Interest Expense 354.00 Telephone Expense 491.00 Total Operating Expenses: 103,765. Net Income 73,703

Pro Forma Balance Sheet
As of December 31, 2018
Assets Liabilities and Owners' Equity
Current Assets: Current Liabilities:
Cash 7,000.00 Accounts Payable 13,905.00
Accounts Receivable 65,706.00 Wages Payable 2,707.00
Baking Supplies 27,850.00 Interest Payable 169
Merchandise Inventory 229.00 Customer Deposit 800
Prepaid Rent 1,692.00
Prepaid Insurance 254.00
Misc. Supplies 136.00
Other Receivable - Insurance 560.00
Total Current Assets 103,427.00 Total Current Liabilities 17,581.00
Long Term Liabilities:
Long Term/Fixed Assets: Loan 5,000.00
Baking Equipment 15,000.00 Total Long Term Liabilities: 5,000.00
Accumulated Depreciation -2,143.00
Net Fixed assets 12,857.00 Total Liabilities: 22,581.00
Common Stock 20,000.00
Retained Earnings 73,703.00
Total Equity 93,703.00
Total Assets: 116,284.00 Total Liabilities & Equity 116,284.00

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