I'm just really confused about this assignment. The workbook has blanks of the Balance sheet, income statement, retained earnings, cash flow, and ratio analysis for year 2017. And i have to revise them. All the instructions are in the pictures as well. I did the unadjusted entries on the trial balance 2017 sheet but i dont know if that is correct or not.

ACC 308 Milestone One Guidelines and Rubric Overview: For Milestone One, which is due in Module Three, you will create adjusting entries for various situations, prepare annual financial reports, calculate ratios, and develop a brief report for management explaining accounting ratios and the effects of interest rates on the future value of money. You will build on this milestone in subsequent modules leading up to the final project. 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 One is a draft of some critical elements of the final project. Note that the management analysis brief corresponds to the management analysis memo in the final project Specifically, the following critical elements must be addressed: Accounting Workbook: Your accounting workbook must include appropriate calculations, ratios, and notes: A Create adjusting entries for financial statement preparation B. Create an adjusted trial balance for financial statement preparation C. Prepare financial statements for determining the company's financial position D. Calculate ratios for determining the company's financial health. Refer to the Final Project Scenario for the ratio formulas. Management Analysis Brief: Your management analysis brief should explain financial information to management, Provide evidence from your accounting workbook to support your ideas when applicable. A. Assess the company's financial health based on ratio analyses presented in the accounting workbook B. Compare ratio analysis to trends in financial ratios over time for illustrating their impact, providing examples to support your claims C. Summarize the effects of different compounding periods and interest rates on future value of money. D. Explain how alignment to relevant regulations and ethical reporting influenced your accounting practices and notes, providing examples to support your claims. Rubric Guidelines for Submission: You will submit two files for this milestone. Your accounting workbook must be submitted as a Microsoft Excel document. Your management analysis brief should be a 1- to 2-page Microsoft Word document with double spacing. 12-point Times New Roman font, and one-inch margins. IL ACC 308 Final Project Scenario Overview: You just began a position as a financial accountant at Peyton Approved. In this role, your first task is to 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, retained 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 3. 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 4. On 12/03/2017, a mixer with a cost of $2,000, accumulated depreciation $1,200, was destroyed by a forklift. As of 12/23/17, insurance company has agreed to pay $700 in January, 2018, for accidental destruction. The company uses the following common ratios: Current Ratio Current Assets/Current Liabilities Quick Ratio Liquid Assets (cash, accounts receivable, marketable securities)/Current Liabilities Account Receivable Turnover Total Revenue/Average Accounts Receivable Inventory Turnover Total cost of Goods Sold/Average Inventory Gross Margin Gross Profit/Total Revenue Return on Sales Net Income/Total Sales Return on Equity Net Income/Total Equity Return of Assets Net Income/Total Assets The company is planning to open another location in 2018. Using the preliminary statements as a base, prepare pro forma (budgeted) financials for 2018 for the new location using the following information: Cost of leasing commercial space: $1,500 per month. Cost of new equipment: $15,000, purchased with a long-term note. Use straight line depreciation assuming a seven-year life, no residual value. Use full year's depreciation for the first year. Equipment purchase was financed with a long-term note, Cost of hiring and training new employees: three at $25,000 each for the first year. 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. Except as noted in 1, 2, 3, and 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 For notes to the financial statements and management analysis memo only, consider the following: Peyton Approved uses the following accounting practices: Inventory: Periodic, LIFO for both baking and merchandise Equipment: Straight line method used for equipment Business financing information: Use this information to calculate interest rates and insurance information and to assess their impact on the company's financial obligations: The 5-year loan was made on June 1, 2016. Terms are 7.5% annual rate, interest only until due date. Insurance: Annual policy covers 12 months, purchased in February, covering March 2017 to February 2018. No monthly adjustments have been made. F L M 0 T U PEYTON APPROVED TRIAL BALANCE As of December 31, 2017 . ref Unaduwted trial balance DI Or 67 520 01 68.51991 Adjusting antis DI CH 5.000.00 rol 700.00 1,175.00 15 01 1.238 07 200.00 200.00 211455 2.114.55 17040 1400000 2.000.00 1.606.64 1.200.00 TX 3.175.00 Cash ID Accounts Received 11 Other Receivable Insurance Baking Supp u Merchandise Invercary 14 Consignment inventory 15 Runt 16 Prepard Insurance 1 Misc Supple 1 Busing Equipment 1 Accumulared Depreciation 3 Camere a Accounts Payable 12 Wages Payah In Prew Notes Payable 25 Commons as Beginning Retardering Dividends 26 Mery 2) Merchandise Sales 30 Cost of Goods So Baked Coll Gato - Mercat 32 Rare Expense Wages Expono 24 Mial Super Experte Business Lioense Expense Me per 19 Depreciation Expense 3 Insurance Expense Atvering aparan 4 Interest Expense 41 Telephone Experts Car Loss an dapafoment 43 20,242.11 3.393 20 21146 5.000.00 20.000 DO 50.144 84 Adjustad tribe Or Cr 1.2004 88 519 91 700.00 18 20 1 05.07 200.00 21455 2.114.55 17114 12 000.00 296.44 10.30 23.437.11 3,393.28 211.6 5.000.00 20 DXIDO 50.144 106.000.00 227 22255 1,205,64 106 834 20 950.77 24 549.19 10.670.72 900046 2.046.77 14 677 96 1 081 08 1 549.74 810.31 19096 106 000.00 0272 1,205,64 106 83429 H5077 24 549.19 10 5711 72 3000 46 2 045 77 1218114 677 86 1091 00 1 540 74 818 31 CR 100.00 6.375.00 429.13632 428.136.32 G.370,00 412 011 32 432.111.32 1 46 HOME Milestone One Instructions Tral Balance 2017 Balance Sheet 2017 Balance Sheet 2017 Ravind Income Statement 2017 Income SEAL M G H 1 1 N Preliminary 2 2 3 4 5 Peyton Approved Balance Sheet As of December 31, 2017 E Assets Current Assets Casa Accounts Receiva Baking Supplies Merchandise Inventory Prepaid Rent Prepaid Insurance Mise Supplies Labilities and Owners' Eault Current Liabilities: Accounts Payables Wagne Payable Interest Payable 20,282.11 9.383.28 21146 10 13 12 1 14 15 16 17 13 15 $ 67,52004 68,519,91 15,506.70 1,230.07 2,114.55 2,114.55 17040 Total Current Assets $ 157,184.31 $ 23.856.85 Total Current Liabilities Long Term Liabilities: Notes Payable Total Long Term Liabilities: 5,000.00 5.000.00 Long Term Fixed Assets: Baking Equipment Accumulated Depreciation Net Fixed assets 14,000.00 -1,606.44 12,393.58 Total Liabilities: 28.856.85 21 22 23 24 25 26 22 ZE 21 30 31 Common Stock Retained Lamings 20,000.00 120,721.02 Total Equity 140 721.02 Total Assels $ 169,57787 Total Liabilities & Equity $ 109,577,87 32 33 3 35 36 37 31 39 40 43 HOME Miestone One Instructions Trial Balance 2017 Balance She 2017 Balance Sheet 2017 Revised Income Statement 2017 Income Statement 2 Ready A c G -- M 1 2 Mitare Ore Welketa Ravised 3 Peyton Approved Balance Sheet As of December 31, 2017 b . 10 13 12 11 14 15 11 17 11 25 20 23 22 21 20 25 BRANA RRR 27 21 29 30 33 11 34 35 32 HOME Misstone One Insurans Trial Balance 2017 Balance Sheet 2017 Balance 2017 Revised Income Statement 2017 11 A C F M N 11 2 1 Preliminary Peyton Approved Statement of Cash Flow for Year Ended 12/31/2017 6 7 B Net Income Depreciation Expense $ 175,576.18 677.86 17625404 10 12 13 14 15 15 17 Increase in Accounts Receivable Increase in Baking Supplies Increase in Merchandise inventory Increase in Prepaid Rent Increase in Prepaid Insurance Increase in Mine Supplies Increase in Accounts Payable Increase in Wages Payable Increase in interest Payable (2588691) (8,18784) (443.10) (44955) (1.00455) (11499) 3.292.11 1.850.48 44 96 Operating Cash Flow 145,354 65 20 21 22 23 24 25 25 22 Cash Flow from Investments Equipment Purchases (8,000.00) Cash Flow from Investments (8.000 CC) NAKUMEENIS Cash Flow from Financing Repayment of Note Payable Dividenda Paid (10,000.00) (10500000) 39 32 33 (115.000.00) Cash Flow from Financing Net Cash Flow 24,354 65 Beginning Cash 43.16539 32 Ending Cash 67.520.04 49 Patained Earnings 2017 Revised Cash Flow 2017 Cash Flow 2017 Revised Balance sheet 2015 Balance Shot 2016 : FX A 2 c E F 1 1 M 1 Mistara Ora Wartbanitas 2 Revised 5 Peyton Approved Statement of Cash Flow for Year Ended 12/31/2017 7 9 10 11 12 1 14 23 1 13 18 13 20 21 23 24 25 23 2 ANNARR 30 31 33 33 5 37 Ratained Eamings 2017 Revised Cash Flow 2017 Cash Flow 2017 Revised Balance shot 2015 Balance Sheet 2016 Incom G38 x H M D Peyton Approved Balance Sheet As of December 31, 2015 1 2 1 4 5 Assets b Current Assets: T Cash Accounts Receivable . Baking Supplies 10 Merchandise Inventory 13 Prepaid Rent 12 Prepaid haurence 11 Miss Supplies 14 15 Total Current Assets 11 Liabilities and Owners' Equity Current Liabilities: Accounts Payable Wages Payable Ihr Payti 15085.84 1118.83 12153 31507.53 35118.97 B042 23 580.27 1215,32 810.21 40.51 77,315.09 16,321 20 HASONRY Total Current Liabilities Long Term Liabilities: Notes Payable 10.000.00 Total Long Term Liabilities: 18 20 23 Long Term Fixed Assets: Baking Equipment Accumulated Deprecia Net Fixed assets 6000 877.79 10,000.00 5,32221 Total Liabilities: 26,327,20 23 24 25 26 22 Common Slack Retained Eamings 20.000.00 38.310.10 56,310.10 Total Equity Total Liabilities & Equity Total Assets 82,637.30 82,837.30 30 33 32 11 3 35 36 33 39 43 Retained Earnings 2017 Revised Cash Flow 2017 Cash Flow 2017 Revised Balance sheet 2015 Balance Sheet 2016 Income se 1 D Peyton Approved Balance Sheet As of December 31, 2016 1 Liabilities and Owners' Equity Current Liabilities: Amounts Payable Wages Payable interest Payable 16,970.00 1.532 80 106.50 43,16539 42.633 00 7,318.06 79497 1.865 CO 1,110 00 5550 5 Assets Current Assets Cash 8 Accounts Receivable 9 Baking Supplies 10 Merchandise Inventory 11 Prepaid Rent 12 Prepaid CCR 13 Misc Suppies 14 15 10 Total Current Assets 13 11 11 Long Term Fixed Assets 20 Baking Equipment 21 Accumulated Depreciation 22 Nat Find assets 23 24 96.742.72 Total Current Liabilities 18,889.30 Long Term Labilities: Notes Payable Total Long Term Liabilities: 15.000.00 3,000.00 -9288 15,000.00 7,071.42 Total Liabilities: 33,669.30 Common Stock Remained Earnings 20,000.00 50,144.84 20 27 Total Equity 70,14484 Total Asses: 103,014.14 Total Uabilities & Equity 103,014.14 30 33 32 34 35 37 61 42 Retained Earnings 2017 Retired Ewnings 2017 Revised Cash Flow 2017 Cash Flow 2017 Revised Balance sheet 2015 Rent 57 1 1 Peyton Approved Income Statement for Year Ended 12/31/2016 4 5 G 214,236.41 77074 21503724 8 D 10 11 12 13 14 15 Bacary Sale Merchandise Sales Total Prom Cast of loss Sold-Sabed Cast of Good Sold Merchandise Total Cost of Goods Sold Grass Proft 73159.59 51961 73,700.23 141318.01 15 20 21 RESUMMUSEENESES 23 24 25 26 29 Operation Rent Fopense Weber Mix. Spalis truere Rudimeve Misc. Expert Depreciation Inpano Advertising purse Interest Paper Tenenie Tocal Operating perse Nanane 1569423 5,821 1,668.18 1,307 RC a. 49336 617.53 740 52314 313 31 29,072.56 112.245A5 32 35 37 0 41 44 Ratained Earnings 2017 Revised Cash Flow 2017 Cash Flow 2017 Revised BALANCE a 1 Peyton Approved Income Statement for Year Ended 12/31/2017 $ 32732255 1.205.04 328,528.19 SEDES Bakery Sales Merchandise Sales Total Revenues Coal 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 10 11 13 13 14 15 16 17 11 13 20 25 22 23 24 25 20 27 Operaing Expenses Rent Expense Wages Mae Supplies Expense Business License Expense Mac. Expense Depreciation Expense Insurance Expanse Actuertising Expense Interest Expense Telephone Expense Total Operating Expenses: 24 549.19 10 670 72 3.000 46 2.045.77 1.36384 67786 1 0910 154974 818 31 490.se 46,25795 Net Income 175,576.18 INGRRRRRRRRSS 32 33 34 33 3 33 HOME Milestone One Instructions Trial Balance 2017 Balance Shred 2017 Balance Shot 2017 Revised Income . G 1 1 Milenne One Wiki 2 Revised Peyton Approved Income Statement for Year Ended 12012017 6 7 9 20 11 13 13 14 13 15 13 18 10 20 23 23 23 24 25 20 27 WHENUSES 13 33 35 HOME Milestone One Instructions Trial Balance 2017 Balance Shed 2017 Balance Shot 2017 Revised Ince F H ! 1 1 M 1 2 Miss Warkbackingtructions Meter der to the Final Project Somari decument for Pylor Station 3 Peyton Approved Ratio Analysis 2017 2016 Current Rato Working Capital) Quick Ratio 5 6 7 B 5 10 11 12 13 14 15 16 17 18 15 20 NR Turnover Invorry Tumover Gron Margin Rebum on Sales Raumon Equity Resum on Asses 22 23 24 25 WXNSEX 22 32 33 O Retained Earnings 2017 Revised Cash Flow 2017 Cash Flow 2017 Revised Balance sheet 2015 Balance 2016 El X 22X 2x 1 3 4 Preliminary Peyton Approved Statement of Retained Earnings for Year Ended 12/31/2017 Beginning Balance: $ 50,144.34 plus Nel income 175,576.18 7. less Dividends: Ending Balance 105,000.00 $ 120,721.02 10 13 12 17 14 15 10 12 18 11 20 21 22 25 24 29 23 29 SEANSAMANG 31 17 34 35 36 33 35 39 42 Metane One Instructions Trial Balance 2017 Balance Sheet 2017 Balance Sheet 2017 1 Menton One Webhosting Revised Peyton Approved Statement of Retained Earnings for Year Ended 12/31/2017 11 14 19 20 BRUXEMEUREX EUROSOW 22 21 24 25 20 27 25 30 32 33 35 37 3 42 The Balance 2017 Balance Sheet 2017 Balance Sheet 2017 Revised Income Statement 2017 Ready