II. Notes to the Financial Statements: Your notes must contain the following: A. Create appropriate notes as year-to-year documentation for managing depreciation, supplies, and inventory. [ACC-308-01) B. Create appropriate notes for long-term debt [ACC-308-01) F ! K L D N M O 1 G H PEYTON APPROVED TRIAL BALANCE As of December 31, 2017 5 ref Unadjusted trial balance Dr Cr 67,520.04 68,519.91 Adjusting entries Dr Cr 1,000.00 ref Adjusted trial balance Dr Cr 68,520.04 68,519.91 8 9 700.00 3,175.00 15,506.70 1,238.07 18,681.70 1,038.07 200.00 10 11 12 13 200.00 2,114.55 2,114.55 170.40 14,000.00 2,114.55 2,114.55 170.49 12,000.00 15 2,000.00 16 17 1,606.44 1,200.00 18 19 1,000.00 3,175.00 Cash Accounts Receivable Other Receivable. Insurance Baking Supplies Merchandise Inventory Consignment Inventory Prepaid Rent Prepaid Insurance Misc. Supplies Baking Equipment Accumulated Depreciation Customer Depost Accounts Payable Wages Payable Interest Payable Notes Payable Common Stock Beginning Retained eamings Dividends Bakery Sales Merchandise Sales Cost of Goods Sold - Baked Cost of Goods Sold - Merchandise Rent Expense Wages Expenso Misc. Supplies Expense Business License Expense Misc. Expense Depreciation Expense Insurance Expense Advertising Expense Interest Expense Telephone Expense Gain/Loss on disposal of equipment 20.262.11 3,383.28 211.46 5,000.00 20,000.00 50,144.84 406.44 1,000.00 23,437.11 3,383.28 211.46 5,000.00 20,000.00 50,144.84 20 21 22 23 24 25 26 27 28 29 105,000.00 106h00.00 327322255 1,205,64 327,322.55 1,205.64 31 32 33 34 35 105,834.29 859.77 24,549.19 10,670.72 3,000.46 2,045.77 1,363.84 677.86 1,091.08 1,549.74 818.31 490.98 105,834.29 859.77 24,549.19 10,670.72 3,000.46 2,045.77 1,363.84 677.86 1,091.08 1,549.74 818.31 490.98 37 38 39 40 41 100.00 6,375.00 429,136.32 429,136.32 6,375.00 432,111.32 432,111.32 42 Instructions Instructions - Milestone 1 Trial Balance 2017 Balance Sheet 2017 BS 2017 Rev Office Update To keep up-to-date with security updates, fixes, and improvements, choose Check for U... F17 fx B D E F G H 1 2 3 Peyton Approved Statement of Retained Earnings For Year Ended 12/31/2017 Instructions Milestone 1 4 5 6 7 Beginning Balance: plus Net Income $ 50,144.84 175,476.18 8 9 less Dividends: Ending Balance 105,000.00 $ 120,621.02 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 623 D E F G H A 1 Peyton Approved Income Statement For Year Ended 12/31/2017 4 Nm 00 5 $ 327,322.55 1,205,64 328,528.19 6 7 8 9 10 11 12 13 Bakery Sales Merchandise Sales Total Revenues Cost of Goods Sold - Baked Cost of Goods Sold - Merchandise Total Cost of Goods Sold Gross Profit 105,834.29 859.77 106,694.06 221,834.13 14 15 16 17 18 Operating Expenses: 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 Rent Expense Wages Expense Misc. Supplies Expense Business License Expense Misc. Expense Depreciation Expense Insurance Expense Advertising Expense Interest Expense Gain/Loss on Disposal of Equipment Telephone Expense Total Operating Expenses: 24,549.19 10,670.72 3,000 46 2,045.77 1,363.84 677.86 1,091.08 1,549.74 818.31 100.00 490.98 46,357.95 Net Income 175,476.18 A B D E H K M N 0 1 2 3 G Peyton Approved Statement of cash Flow For Year Ended 12/31/2017 Instructions Milestone 1 4 5 6 Net Income Depreciation Expense Loss on Disposal of Equipment $ 175,476.18 677.86 100.00 7 B 176,254.04 9 10 11 12 14 15 16 17 Increase in Accounts Receivable Increase in Baking Supplies Increase in Merchandise Inventory Increase in Prepaid Rent Increase in Prepaid Insurance Increase in Misc. Supplies Increase in Accounts Payable Increase in Wages Payable Increase in Interest Payable Increase in Other Receivables Increase in Consignment Inventory Increase in Customer Deposits (25,886.91) (11,362.84) (243.10) (449.55) (1.004.55) (114.99) 6,467.11 1,850.48 44.96 (700.00) (200.00) 1,000.00 18 19 20 21 145,654.65 Operating Cash Flow Cash Flow from Investments Equipment Purchases (6,000.00) 23 24 25 26 27 28 29 30 31 32 33 Cash Flow from Investments (6,000.00) Cash Flow from Financing Repayment of Note Payable Dividends Paid (10,000.00) (105,000.00) Cash Flow from Financing (115,000.00) 35 36 Net Cash Flow 24,654.65 38 Beginning Cash 43,165.39 39 40 67.520.04 Ending Cash 42 J26 AX & fx A B D E F G H 1 2017 2016 2 3 4 5 Current Ratio (Working Capital) 5.79 5.18 6 Quick Ratio 5.78 4.99 7 A/R Turnover 5.91 5.53 8 9 Inventory Turnover 7.61 8.81 Gross margin 68% 65% 10 11 12 13 14 15 Return on Sales 53% 52% 16 Return on Equity 161% 161% 17 Return on Assets 109% 109% 18 19 20 21 22 23 24 25 26 27 28 Check for Updates G H Office Update To keep up-to-date with security updates, fixes, and improvements, choose Check for U... E30 x fac =E12-E28 D F 1 Peyton Approved 2 Pro Forma Income Statement 3 For Year Ended 12/31/2018 4 5 6 Bakery Sales $ 261,858.04 7 Merchandise Sales 964.51 8 Total Revenues 262,822.55 9 Cost of Goods Sold - Baked 84,667.43 10 Cost of Goods Sold - Merchandise 687.82 11 Total Cost of Goods Sold 85,355 25 12 Gross Profit 177,467.30 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 1,636.62 22 Misc. Expense 1,091.07 23 Depreciation Expense 2,142.86 24 Insurance Expense 872.86 25 Advertising Expense 1,239.79 26 Interest Expense 654.65 27 Telephone Expense 392.78 28 Total Operating Expenses: 103,431.00 29 30 Net Income 74,036.30 31 32 21 33 34 35 Ratin Analele Milestone 2 Ineturtinne Pro Forma IS Pm Farma RS Once Update 10 Keep up-to-date with secunly updates, fixes, and improvements, choose Check for U... Check for Updates H34 x fx B G H D E F Peyton Approved Pro Forma Balance Sheet For Year Ending 12/31/2018 2 3 3 5 5 . 3 Assets Liabilities and Owners' Equity Current Liabilities: Accounts Payable 20,622.11 Wages Payable 2,706.62 Interest Payable 169.17 Current Assets: Cash Accounts Receivable Baking Supplies Merchandise Inventory Prepaid Rent Prepaid Insurance Misc. Supplies 7,000.00 65,705.64 28,222.48 229.27 1,691.64 1,691.64 136.39 Total Current Assets 104,677.06 Total Current Liabilities 23,497.90 Long Term Liabilities: Notes Payable Total Long Term Liabilities: 20,000.00 20,000.00 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 -9 0 1 52 Long Term/Fixed Assets: Baking Equipment Accumulated Depreciation Net Fixed assets 15,000.00 -2,142.86 12,857.14 Total Liabilities: 43,497.90 Common Stock Retained Earnings 74,036.30 Total Equity 74,036.30 117,534.20 Total Assets: 117,534.20 Total Liabilities & Equity