PEYTON APPROVED PRO FORMA INFORMATION The company is planning to open another location in 2018 . Prepare pro forma financials for 2018 for the new location using the following information: 1. Cost of leasing commercial space: $1,500 per month. 2. 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 year's depreciation for the first year.Equipment purchase was financed with a long-term note. 3. Cost of hiring and training new employees: three at $25,000 each for the first year. 4. Except as noted below 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 5. 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. In a separate Word document Reporting *Refer to Final Project II Assignment Guidelines and Rubric document Analyze Data 1. Briefly summarize each department's budget - its purpose, what the numbers represent, how they can be used.Also, discuss the month to month variances, what they mean, and why they are important 2. Explain two variances that might cause concern or prompt further analysis.