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I need help with this work book and proforma statement for ACC 308: PEYTON APPROVED PRO FORMA INFORMATION The company is planning to open another
I need help with this work book and proforma statement for ACC 308:
PEYTON APPROVED PRO FORMA INFORMATION | |||||||||||
The company is planning to open another location in 2018 . Prepare pro forma financials for 2018 for the new location using the following information: | |||||||||||
1. Cost of leasing commercial space: $1,500 per month. | |||||||||||
2. Cost of new equipment: $15,000. Use straight line depreciation assuming a seven-year life. Use full years depreciation for the first year. | |||||||||||
3. Cost of hiring and training new employees: three at $25,000 each for the first year. | |||||||||||
4. Except as noted in 5, 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. | |||||||||||
5. 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. |
Peyton Approved | ||||||||
Balance Sheet | ||||||||
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 | Wages Payable | 3,383.28 | |||||
Other Recievables- Insurance | 700.00 | Interest Payable | 211.46 | |||||
Baking Supplies | 18,681.70 | Customer Deposits | 1,000.00 | |||||
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 |
Peyton Approved | ||||
Income Statement | ||||
For Year Ended 12/31/2017 | ||||
Bakery Sales | $ 327,322.55 | |||
Merchandise Sales | 1,205.64 | |||
Loss on Disposal | ||||
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: | ||||
Loss on Disposal | 100.00 | |||
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 | |||
Total Operating Expenses: | 46,357.95 | |||
Net Income | 175,476.18 |
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