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 workbook. 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:

Create adjusting entries for financial statement preparation.

Create an adjusted trial balance for financial statement preparation.

Prepare financial statements for determining the companys financial position.

Calculate ratios for determining the companys financial health.

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.

Assess the companys financial health based on ratio analyses presented in the accounting workbook.

Compare ratio analysis to trends in financial ratios over time for illustrating their impact, providing examples to support your claims.

Summarize the effects of different compounding periods and interest rates on future value of money.

J K G H I INSTRUCTIONS FOR MILESTONE 1 (Due Module 3) L M N O P Q 10 IMPORTANT NOTE: 12 Make sure to completely review the Rubric for Milestone 1 Use the data from this Milestone and begin working on your final presentation due in Final Project (Module 7) 18 ITEMS TO COMPLETE FOR THIS MILESTONE (Blue Tabs) : 20 GENERAL 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 22 ability to meet their goals. 23 24 TRIAL BALANCE 2017 TAB Using the Peyton Approved financial data (see bottom of page): Create the necessary adjusting journal entries. Use the REF column to reference the entry to each event Complete the adjusted trial balance 28 Instructions Instructions - Milestone 1 Trial Balance 2017 Balance Sheet 2017 BS 2017 Revised Income Statement 2017 IS 2017 Revised Retained Earnings 20 30 REVISED FINANCIAL STATEMENTS Using the preliminary financial statements (yellow tabs) and the Trial Balance 2017, prepare the following statements: Balance Sheet (BS 2017 Revised tab) Income Statement (US 2017 Revised tab) Retained Earnings Statement (RE 2017 Revised tab) Statement of Cash Flows (CF 2017 Revised tab) RATIO ANALYSIS Using the revised 2017 financial statements, 2016 financial statements (orange tabs), and 2015 financial statements (orange tabs), prepare a ratio analysis with the following ratios: Current Ratio (Working Capital) Quick Ratio A/R Turnover Inventory Turnover Gross margin Return on Sales Return on Equity Return on Assets 52 PEYTON APPROVED FINANCIAL DATA Instructions Instructions - Milestone 1 Trial Balance 2017 Balance Sheet 2017 BS 2017 Revised Income Statement 2017 IS 2017 Revised Retained Earnings 20 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 for the goods 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 a $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 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 Instructions Instructions - Milestone 1 Trial Balance 2017 Balance Sheet 2017 BS 2017 Revised Income Statement 2017 S 2017 Revised Retained Earnings 20 + J K G H I INSTRUCTIONS FOR MILESTONE 1 (Due Module 3) L M N O P Q 10 IMPORTANT NOTE: 12 Make sure to completely review the Rubric for Milestone 1 Use the data from this Milestone and begin working on your final presentation due in Final Project (Module 7) 18 ITEMS TO COMPLETE FOR THIS MILESTONE (Blue Tabs) : 20 GENERAL 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 22 ability to meet their goals. 23 24 TRIAL BALANCE 2017 TAB Using the Peyton Approved financial data (see bottom of page): Create the necessary adjusting journal entries. Use the REF column to reference the entry to each event Complete the adjusted trial balance 28 Instructions Instructions - Milestone 1 Trial Balance 2017 Balance Sheet 2017 BS 2017 Revised Income Statement 2017 IS 2017 Revised Retained Earnings 20 30 REVISED FINANCIAL STATEMENTS Using the preliminary financial statements (yellow tabs) and the Trial Balance 2017, prepare the following statements: Balance Sheet (BS 2017 Revised tab) Income Statement (US 2017 Revised tab) Retained Earnings Statement (RE 2017 Revised tab) Statement of Cash Flows (CF 2017 Revised tab) RATIO ANALYSIS Using the revised 2017 financial statements, 2016 financial statements (orange tabs), and 2015 financial statements (orange tabs), prepare a ratio analysis with the following ratios: Current Ratio (Working Capital) Quick Ratio A/R Turnover Inventory Turnover Gross margin Return on Sales Return on Equity Return on Assets 52 PEYTON APPROVED FINANCIAL DATA Instructions Instructions - Milestone 1 Trial Balance 2017 Balance Sheet 2017 BS 2017 Revised Income Statement 2017 IS 2017 Revised Retained Earnings 20 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 for the goods 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 a $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 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 Instructions Instructions - Milestone 1 Trial Balance 2017 Balance Sheet 2017 BS 2017 Revised Income Statement 2017 S 2017 Revised Retained Earnings 20 +