Homepage Sithers 0+98 Overview: For Milestone Two, which is due in Module Five, you will create pro forma financial statements, notes to the financial statements, and develop a report for management explaining the impact of pro forma financial statements on the company's expansion plans, implications of inventory costing, contingent liabilities, and revenue recognition. In your management analysis brief, you will also identify potential issues in interpreting financial statements Prompt: First, review the Final Project Scenario document and the accompanying Final Project Workbook. Follow the instructions below and complete the workbook with the information provided in the scenario. Using your review of the scenario, develop a management analysis brief that addresses the critical elements indicated below. Use information from your accounting workbook to support your claims in the management analysis brief Note: Milestone Two is a draft of some critical elements of the final project. Note that the management analysis brief informs the management analysis memo in the final project. Specifically, the following critical elements must be addressed: 1. Accounting Workbook: Your accounting workbook must include appropriate calculations and statements A Create pro forma financial statements for predicting ability to meet future expansion goals. Pro Forma Statements are "what if statements. If the company opens the second location, what will the budgeted income statement and budgeted balance sheets be? 1. Notes to the Financial Statements: You will find an example for how to format these notes located in the module resources. Your notes must contain the following: A. Create appropriate notes as year-to-year documentation for managing depreciation, supplies, and inventory B. Create appropriate notes for long-term debt. Ill. Management Analysis Brief: Your management analysis brief should explain financial information to management. Provide evidence from your accounting workbook to support your ideas where applicable. A. Discuss the impact of the pro forma financial statements for predicting ability to meet future expansion goals 8. Describe the implications of inventory costing, contingent liabilities, and revenue recognition C. Identify potential issues in interpretation of financial information, providing examples to support your ideas. Rubric Guidelines for Submission: You will submit three files for this milestone. Your accounting workbook must be submitted as a Microsoft Excel document. Your notes to the financial statement must be submitted in a Microsoft Word document. Your management analysis brief should be a separate 1- to 2-page Microsoft Word document with double spacing, 12-point Times New Roman font, and one-inch margins Southern New Hampshire University ACC 308 Fal Project Scenario Overview: You just began a position as a financial accotant at Peyton Approved. In this cole, your first task is n 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 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: 1. A supplier shipped $3,000 of ingredients on 12/29/17. Peyton receives an invoice for $3,175-goods of $3,000 and freight of $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 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. 3. 4. On 12/03/2017, a mixer with a cost of $2,000, accumulated depreciation $1,200, as destroyed by a forklift. As of 12/23/17, insurance company has agreed to pay $700 in January, 2018. fcr accidental- destruction. M