Overview: In your final project, you will assume the role of an accountant and complete the year-end adjustment process for your company using a provided workbook. This workbook is the first deliverable (Part I) of your final project. In Part Il, you will analyze the provided financials of the same company and create a report documenting your findings. For your third milestone, you will complete a draft of your ratio analysis report so that you can gain feedback and improve your work prior to the final submission in Module Eight. Note that you do not need feedback from Milestone Two to successfully complete this assignment. You should use the provided final Project Part I template to structure your submission.

Prompt: Specifically, the following critical elements must be addressed:

Abstract:

Summarize the story of profitability and liquidity for your company. In other words, highlight the most important aspects of your report, including your major conclusions.

Computations: Identify and describe your computations from the Financial Analysis tab of your workbook. Be sure to format your key results in a table or graphical format, as appropriate. Explain why each cited figure was included in your report in terms of its importance for the organization.

Comparison: Evaluate the financials of the company by comparing current ratios to both historical and industry-average ratios. Clearly identify all unexpected or aberrant figures.

Conclusion: Draw informed conclusions based on your computations and comparisons in the previous paragraphs. Be sure to justify your claims with specific evidence and examples.

Peyton Approved Adjusting Journal Entries 2017 Date Accounts Debit Credit 31-Dec Depreciation Expense 2,642.86 Accumulated depreciation 2,642.86 31-Dec Amortization Expense 2,000.00 Accumulated Amortization 2,000.00 31-Dec Interest Expense 1,468.75 Interest Payable 1,468.75 31-Dec Insurance Expense 2,000.00 Prepaid Insurance 2,000.00 31-Dec Baking Cost of Goods Sold 137.400.00 Baking Supplies 137.400.00 31-Dec Office Supplies Expense 1,350.00 Office Supplies 1,350.00 31-Dec Wages Expense 22.800.00 Wages Payable 22,800.00 169,661.61 169,661.61 Adjusting Entries Income Statement Closing Entries Statement of RePeyton Approved Statement of Retained Earnings For Year Ending 12/31/2017 Beginning Balance: plus Net Income 83,642.39 less Dividends: 20,000.00 Ending Balance: 63,642.39As of December 31, 2017 Assets Liabilities and Owners' Equity Current Assets: Current Liabilities: Cash 55,428.00 Accounts Payable 27,325.00 Baking Supplies 27,850.00 Wages Payable 22,800.00 Merchandise Inventory (FIFO) 25,750 00 Interest Payable 1,468 75 Prepaid Rent 7,500.00 Total Current Liabilities 51,693.75 Prepaid Insurance 400 00 Office Supplies 250.00 Long Term Liabilities: Accounts Receivable 30 401 00 Notes Payable 10,000 00 Total Current Assets 147,579.00 Loans Payable 21 000.00 Total Long Term Liabilities: 31,000.00 Total Liabilities: 82.593.75 Long Term/Fixed Assets: Baking Equipment 26,000,00 Common Stock 30,000 00 Accumulated Depreciation 5.842 86 Retained Earnings 63,642.39 20.367.14 Leasehold Improvements 10,000 00 Total Equity 93,642.39 Accumulated Amortization 4.000 00 6,000.00 Trademark 2,300.00 Total Assets. 176,236.14 Total Liabilities & Equity 176 236.14 Clouing Entries Statement of Retained Earnings Balance Sheet Financial AnalysisIncome Statement For Year Ending 12/31/2017 Bakery Sales $ 335,675.00 Merchandise Sales $ 35,200.00 Total Revenues 370,875.00 Cost of Goods Sold (FIFO) 15,760.00 Baking Cost of Goods Sold 137,400.00 Gross Profit (FIFO) 217,715.00 Operating Expenses: Rent Expense 90,000.00 Interest Expense 1,468.75 Insurance Expense 2,000.00 Depreciation Expense 2,642.86 Amortization Expense 2,000.00 Misc. Expense 2,780.00 Office Supplies Expense 1,35020 Business License Expense 375.00 Advertising Expense 5,200.00 Wages Expense 22,800.00 Telephone Expense 3,456.00 Total Operating Expenses: 134,072.61 Net Income (FIFO) 83,642.39 Income Statement Closing Entries Statement of Retained Earnings Balance SheetPeyton Approved Trial Balance 2017 Unadjusted trial balance Adjusting entries Adjusted trial balance Account Debit Credit Debit Credit Debit Credit Cash 55,428.00 55,428.00 Baking Supplies 165,250.00 137.400.00 27,850.00 Merchandise Inventory (FIFO) 25,750,00 25,750.00 Prepaid Rent 7,500.00 7,500.00 Prepaid Insurance 2,400.00 2.000.00 400.00 Baking Equipment 26,000.00 26,000.00 Accumulated Depreciation 3,000.00 2,642.86 5,642.86 Leasehold Improvements 10,000.00 10.000.00 Accumulated Amortization 2,000.00 2,000.00 4.000.00 Trademark 2,300.00 2,300.00 Office Supplies 1,600.00 1,350.00 250 00 Accounts Receivable 30.401.00 30,401.00 Notes Payable 10,000.00 10,000.00 Interest Payable 1,468.75 1,468.75 Accounts Payable 27,325.00 27,325.00 Wages Payable 22,800.00 22,800.00 Loans Payable 21,000.00 21,000.00 Common Stock 30,000.00 30,000 00 Dividends 20,000:00 20,000.00 Bakery Sales 335,675.00 335.675.00 Merchandise Sales 35,200.00 35,200.002017 2016 2015 Industry Standard Quick Ratio 1.66 2.2 2.8 1.75 Gross Margin 0.59 0.55 0.7 0.7 Net Margin 0.23 0.22 0.32 0.24 Return on Sales 0.23 0.24 0.26 0.23 Return on Equity 0.89 0.9 0.78 0.8