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.

2017 2016 2015 Industry Standard 1.75 212 2.8 Quick Ratio 1.66 0.59 0.55 0.71 0.7 0.22 0.23 0.32 0.24 Gross Margin Net Margin Return on Sales Return on Equity 0.24 0.26 0.23 0.23 0.89 0.8 0.78 0.9 Peyton Approved Adjusting Journal Entries 2017 Credit Date Accounts 31-Dec Depreciation Expense Accumulated depreciation Debit 2,642.86 2,642.86 2,000.00 31-Dec Amortization Expense Accumulated Amortization 2,000.00 1,468.75 31-Dec Interest Expense Interest Payable 1,468.75 2,000.00 31-Dec Insurance Expense Prepaid Insurance 2,000.00 137,400.00 31-Dec Baking Cost of Goods Sold Baking Supplies 137,400.00 1,350.00 31-Dec Office Supplies Expense Office Supplies 1,350.00 31-Dec Wages Expense Wages Payable 22.800.00 22,800.00 169,661.61 169,661.61 Closing Entries Statement of Re Adjusting Entries Income Statement Peyton Approved Statement of Retained Earnings For Year Ending 12/31/2017 Beginning Balance: plus Net Income less Dividends: Ending Balance: 83,642.39 20,000.00 63,642.39 As of December 31, 2017 Assets Current Assets Cash Baking Supplies Merchandise Inventory (FIFO) Prepaid Rent Prepaid Insurance Office Supplies Accounts Receivable Total Current Assets 55,428.00 27,850.00 25,750.00 7,500.00 400.00 250.00 30,401.00 Liabilities and Owners' Equity Current Liabilities: Accounts Payable 27,325.00 Wages Payable 22,800.00 Interest Payable 1,468.75 Total Current Liabilities 51,693.75 Long Term Liabilities: Notes Payable Loans Payable Total Long Term Liabilities: Total Liabilities: 10,000.00 21,000.00 147,579.00 31,000.00 82,593.75 Long Term/Fixed Assets: Baking Equipment Accumulated Depreciation 26,000.00 5,842 86 Common Stock Retained Earnings 30,000.00 63,64239 20,357.14 Total Equity 93,642.39 Leasehold Improvements Accumulated Amortization 10,000 00 4,000.00 6,000.00 Trademark 2,300.00 176,236.14 Total Liabilities & Equity 176,236.14 Total Assets cincang Entries Statement of Retained Earnings Balance Sheet Financial Analyse Income Statement For Year Ending 12/31/2017 Bakery Sales Merchandise Sales Total Revenues Cost of Goods Sold (FIFO) Baking Cost of Goods Sold Gross Profit (FIFO) $ 335,675.00 $ 35,200.00 370,875.00 15,760.00 137,400.00 217,715.00 Operating Expenses: Rent Expense Interest Expense Insurance Expense Depreciation Expense Amortization Expense Misc. Expense Office Supplies Expense Business License Expense Advertising Expense Wages Expense Telephone Expense Total Operating Expenses: 90,000.00 1,468.75 2,000.00 2,642.86 2,000.00 2,780.00 1,350-40 375.00 5,200.00 22,800.00 3,456.00 134,072.61 83,642.39 Net Income (FIFO) Income Statement Closing Entries Statement of Retained Earnings Balance Sheet Adjusting entries Debit Credit 137.400.00 Peyton Approved Trial Balance 2017 Unadjusted trial balance Debit Credit 55,428,00 165,250.00 25,750.00 7,500.00 2,400.00 26,000.00 3,000.00 10,000.00 2,000.00 2,300.00 1,600.00 30,401.00 10,000.00 2,000.00 2,642 86 Account Cash Baking Supplies Merchandise Inventory (FIFO) Prepaid Rent Prepaid Insurance Baking Equipment Accumulated Depreciation Leasehold Improvements Accumulated Amortization Trademark Office Supplies Accounts Receivable Notes Payable Interest Payable Accounts Payable Wages Payable Loans Payable Common Stock Dividends Bakery Sales Merchandise Sales 2,000.00 Adjusted trial balance Debit Credit 55,428,00 27,850.00 25,750.00 7,500.00 400.00 26,000.00 5,642 86 10,000.00 4,000.00 2,300.00 250.00 30,401.00 10,000.00 1,468.75 27,325.00 22,800.00 21,000.00 30,000.00 20,000.00 335,675.00 35,200.00 1,350.00 1,468.75 27 325.00 22,800.00 21,000.00 30,000.00 20,000.00 335,675.00 35,200.00 1,350.00 1,600.00 30,401.00 250.00 30,401.00 10,000.00 1,468.75 27,325.00 10,000.00 1,468.75 27 325.00 22,800.00 21,000.00 30,000.00 22,800.00 21,000.00 30,000.00 20,000.00 20,000.00 335,675.00 35,200.00 335,675.00 35,200.00 137,400.00 Office Supplies Accounts Receivable Notes Payable Interest Payable Accounts Payable Wages Payable Loans Payable Common Stock Dividends Bakery Sales Merchandise Sales Baking Cost of Goods Sold Rent Expense Interest Expense Insurance Expense Depreciation Expense Amortization Expense Misc. Expense Office Supplies Expense Business License Expense Advertising Expense Wages Expense Telephone Expense Merchandise COGS (FIFO) 90,000.00 1,468.75 2,000.00 2,642.86 2,000.00 2,780.00 137.400.00 90,000.00 1,468.75 2,000.00 2.642.86 2,000.00 2,780.00 1,350.00 375.00 5,200.00 22,800.00 3,456.00 15,760.00 1,350.00 375.00 5,200.00 22,800.00 3,456.00 15,760.00 Total: (FIFO) Chart of Accounts 464,200.00 464,200.00 169,661.61 Adjusting Entries Income Statement Closing Entries 169,661.61 493.111.61 493.111.61 Stati... Worksheet 2017 2016 2015 Industry Standard 1.75 212 2.8 Quick Ratio 1.66 0.59 0.55 0.71 0.7 0.22 0.23 0.32 0.24 Gross Margin Net Margin Return on Sales Return on Equity 0.24 0.26 0.23 0.23 0.89 0.8 0.78 0.9 Peyton Approved Adjusting Journal Entries 2017 Credit Date Accounts 31-Dec Depreciation Expense Accumulated depreciation Debit 2,642.86 2,642.86 2,000.00 31-Dec Amortization Expense Accumulated Amortization 2,000.00 1,468.75 31-Dec Interest Expense Interest Payable 1,468.75 2,000.00 31-Dec Insurance Expense Prepaid Insurance 2,000.00 137,400.00 31-Dec Baking Cost of Goods Sold Baking Supplies 137,400.00 1,350.00 31-Dec Office Supplies Expense Office Supplies 1,350.00 31-Dec Wages Expense Wages Payable 22.800.00 22,800.00 169,661.61 169,661.61 Closing Entries Statement of Re Adjusting Entries Income Statement Peyton Approved Statement of Retained Earnings For Year Ending 12/31/2017 Beginning Balance: plus Net Income less Dividends: Ending Balance: 83,642.39 20,000.00 63,642.39 As of December 31, 2017 Assets Current Assets Cash Baking Supplies Merchandise Inventory (FIFO) Prepaid Rent Prepaid Insurance Office Supplies Accounts Receivable Total Current Assets 55,428.00 27,850.00 25,750.00 7,500.00 400.00 250.00 30,401.00 Liabilities and Owners' Equity Current Liabilities: Accounts Payable 27,325.00 Wages Payable 22,800.00 Interest Payable 1,468.75 Total Current Liabilities 51,693.75 Long Term Liabilities: Notes Payable Loans Payable Total Long Term Liabilities: Total Liabilities: 10,000.00 21,000.00 147,579.00 31,000.00 82,593.75 Long Term/Fixed Assets: Baking Equipment Accumulated Depreciation 26,000.00 5,842 86 Common Stock Retained Earnings 30,000.00 63,64239 20,357.14 Total Equity 93,642.39 Leasehold Improvements Accumulated Amortization 10,000 00 4,000.00 6,000.00 Trademark 2,300.00 176,236.14 Total Liabilities & Equity 176,236.14 Total Assets cincang Entries Statement of Retained Earnings Balance Sheet Financial Analyse Income Statement For Year Ending 12/31/2017 Bakery Sales Merchandise Sales Total Revenues Cost of Goods Sold (FIFO) Baking Cost of Goods Sold Gross Profit (FIFO) $ 335,675.00 $ 35,200.00 370,875.00 15,760.00 137,400.00 217,715.00 Operating Expenses: Rent Expense Interest Expense Insurance Expense Depreciation Expense Amortization Expense Misc. Expense Office Supplies Expense Business License Expense Advertising Expense Wages Expense Telephone Expense Total Operating Expenses: 90,000.00 1,468.75 2,000.00 2,642.86 2,000.00 2,780.00 1,350-40 375.00 5,200.00 22,800.00 3,456.00 134,072.61 83,642.39 Net Income (FIFO) Income Statement Closing Entries Statement of Retained Earnings Balance Sheet Adjusting entries Debit Credit 137.400.00 Peyton Approved Trial Balance 2017 Unadjusted trial balance Debit Credit 55,428,00 165,250.00 25,750.00 7,500.00 2,400.00 26,000.00 3,000.00 10,000.00 2,000.00 2,300.00 1,600.00 30,401.00 10,000.00 2,000.00 2,642 86 Account Cash Baking Supplies Merchandise Inventory (FIFO) Prepaid Rent Prepaid Insurance Baking Equipment Accumulated Depreciation Leasehold Improvements Accumulated Amortization Trademark Office Supplies Accounts Receivable Notes Payable Interest Payable Accounts Payable Wages Payable Loans Payable Common Stock Dividends Bakery Sales Merchandise Sales 2,000.00 Adjusted trial balance Debit Credit 55,428,00 27,850.00 25,750.00 7,500.00 400.00 26,000.00 5,642 86 10,000.00 4,000.00 2,300.00 250.00 30,401.00 10,000.00 1,468.75 27,325.00 22,800.00 21,000.00 30,000.00 20,000.00 335,675.00 35,200.00 1,350.00 1,468.75 27 325.00 22,800.00 21,000.00 30,000.00 20,000.00 335,675.00 35,200.00 1,350.00 1,600.00 30,401.00 250.00 30,401.00 10,000.00 1,468.75 27,325.00 10,000.00 1,468.75 27 325.00 22,800.00 21,000.00 30,000.00 22,800.00 21,000.00 30,000.00 20,000.00 20,000.00 335,675.00 35,200.00 335,675.00 35,200.00 137,400.00 Office Supplies Accounts Receivable Notes Payable Interest Payable Accounts Payable Wages Payable Loans Payable Common Stock Dividends Bakery Sales Merchandise Sales Baking Cost of Goods Sold Rent Expense Interest Expense Insurance Expense Depreciation Expense Amortization Expense Misc. Expense Office Supplies Expense Business License Expense Advertising Expense Wages Expense Telephone Expense Merchandise COGS (FIFO) 90,000.00 1,468.75 2,000.00 2,642.86 2,000.00 2,780.00 137.400.00 90,000.00 1,468.75 2,000.00 2.642.86 2,000.00 2,780.00 1,350.00 375.00 5,200.00 22,800.00 3,456.00 15,760.00 1,350.00 375.00 5,200.00 22,800.00 3,456.00 15,760.00 Total: (FIFO) Chart of Accounts 464,200.00 464,200.00 169,661.61 Adjusting Entries Income Statement Closing Entries 169,661.61 493.111.61 493.111.61 Stati... Worksheet