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.

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 suppliers warehouse.

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

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.

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 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 years 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.

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.

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.

I need a revised Statement of Cash Flow. This is the original

	Peyton Approved
	Statement of cash Flow
	For Year Ended 12/31/2017
	Net Income				$ 175,576.18
	Depreciation Expense				677.86
						176,254.04
	Increase in Accounts Receivable					(25,886.91)
	Increase in Baking Supplies					(8,187.84)
	Increase in Merchandise inventory					(443.10)
	Increase in Prepaid Rent					(449.55)
	Increase in Prepaid Insurance					(1,004.55)
	Increase in Misc. Supplies					(114.99)
	Increase in Accounts Payable					3,292.11
	Increase in Wages Payable					1,850.48
	Increase in Interest Payable					44.96
		Operating Cash Flow					145,354.65
	Cash Flow from Investments
	Equipment Purchases					(6,000.00)
		Cash Flow from Investments					(6,000.00)
	Cash Flow from Financing
	Repayment of Note Payable					(10,000.00)
	Dividends Paid					(105,000.00)
		Cash Flow from Financing					(115,000.00)
		Net Cash Flow					24,354.65
	Beginning Cash						43,165.39
	Ending Cash						67,520.04