Overview: You just began a position as a financial accountant at Peyton Approved. In this role, your first task is to prepare the companys 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 the goods, as well as a bill for freight for $175, all dated 12/29/17. Goods were shipped FOB suppliers warehouse.

2. At 12/31/17, Peyton has $200 worth of merchandise on consignment at Brunos 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.

5. Note about later borrowing - financials will show loan from parents repaid and use of bank financing.

The company is planning to open another location in 2018. Prepare pro forma 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 years depreciation for the first year.

Cost of hiring and training new employees: three at $25,000 each for the first year.

Except as noted below, 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.

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.

Please help me prepare the revised balance sheet.

Preliminary Peyton Approved Balance Sheet As of December 31, 2017 Assets Liabilities and Owners' Equity Current Assets Cash Accounts Receivable Baking Supplies Merchandise Inventory Prepaid Rent Prepaid Insurance Misc. Supplies Current Liabilities Accounts Payable Wages Payable Interest Payable 67,520.04 68,51991 15,506.70 1238.07 2,114.55 2,114.55 170.49 20,262.11 3,383.28 211.46 Total Current Assets 157,184.31 Total Current Liabilities 23,856.85 Long Term/Fixed Assets Baking Equipment Long Term Liabilities Notes Payable Total Long Term Liabilities 5,000.00 14,000.00 1,606.44 5,000.00 Accumulated Depreciation Net Fixed assets 12,393.56 Total Llabilitles 28,856.85 Common Stock Retained Earning: 20,000.00 20,721.02 Total Equity 140,721.02 Total Assets 169,577.87 Total Liabilities & Equity 169,577.87 Peyton Approved Balance Sheet As of December 31, 2017 Assets Liabilities and Owners' Equity Current Liabilities Accounts Payable Wages Payable nterest Payable Current Assets Cash Accounts Receivable Baking Supplies Merchandise Inventory Prepaid Rent Prepaid Insurance Misc Supplies Total Current Assets 0.00 Total Current Liabilities Long Term/Fixed Assets Baking Equipment Long Term Liabilities Notes Payable Total Long Term Liabilities Accumulated Depreciation Net Fixed assets Total Liabilities Common Stock Retained Earnings Total Equity Total Assets: Total Liabilities & Equity