Prepare a report for YNF regarding financial performance and Internal Control. Use YNF 2022 Q1 Income Statement, Financial History, and Interviews. The report should include the following.

• 2022 Q1 revenue and income (before tax) for each YNF store (you need to choose a proper chart).
• Changes/Trends of Q1 revenue and income for YNF (not each store) over time by using the 2022 and historical data (you need to choose a proper chart).
• Store analysis to show each store's performance (you do not need to include all 12 stores) - Find any interesting stories/comparisons for a few stores.
• Potential risks/threats of employees' fraud or errors & possible Control Activities mitigating them (Risk analysis begins with stating what the goals/objectives are - COSO framework).

Please use Excel for creating charts and prepare a Word document with proper charts and short explanations - submit one Word doc

fx Revenue 2021-1 YNF Financial History YNF Q1 Income Statement Income Statement + Y Not Flowers Project Summary of Interview with Ferrest Forrest Green followed in the footsteps of his Father, Tony Green, and epenr most of hes adulr life working with flowers. He worked for a large commercial flower grower whille he pot his beline degroe in horticulture for Colorado State University. After graduation, he travelod extentively to sec how flowers are grown around the world. He spent a year at the Dutch Flower Auction where European flower growers, members of the Durch Flower Wholesale Association, assembled their flowers in a 2 million square meter warchouse for buyers from around the world. He then went wene time in Kenya, which is surprisingly the 34 largest exporter of cul flowers in the world. Kenya crjoys a sumny climate that enables high-quality blossoms to be grown year-roand. Afler woeking with larpe flower distribution erganizations, he recognined the inherent problems crealed by shipping flowers around the woeld from remote locations. First, it was genting more expense as the cost of jet fual and transportation incteases. Soound, consumers were becoming more demanding. They wanted fresher flowers that lested longer Forrest ceturned to the US. intent en establishing his own flower diseributive besiness with a goal of delivering high quality, long-tasting cur flowers to his customen. There is already a larpo network of grecnhouse growers in the U.S. As of 2015, the top 100 grecnhouse gowers operatd grecnhouse Facilities msompassing over 228,900,000 square foet. Forrest plannod to use his inowiodge of thowen and flower distritution processes to open distrbution ceniers that could deliver frest-cut flowers from growers to customers in one day. To honor his Father, he opendad has fint YNor Flowers lec, store in 2009 (Y Not is Tony spelled backward). Y Not Flowens (hereafter YNF) serves wholecle cuatomers, such as flower shops, in major metropolitan areas around the US. Each YNF location (Fornest refers to then as stores) offers customers over 20 types of fresh cur flowen, wach as ruses, carmutions, tolips, etc. Their motbo is Fresh is Best. On the advioe of coubsel, Forrea incorporated Y Non Flowers jost before he opsnod the firs store. He imvested $1,000,000 in the business (contributed capital) and ii curtently the sole sharchelder. His board of directors include Abby, his sister-in-law, who also woeks at the Seatle shore, and Hert, who works at the San Diego store. The boand meets annually to discuss expunsion phans. Thcy are cumently concerned about managing any expansion, sreating incentives for the employes no deliver the frebest flowers, and finding new ways to leverage technology in the expansion. Abby reetatly pointad our that the enployee bandbook is seriously outdated and niet all stores were consistent in their basiess proeses. Forrest rocognized that his supply chain was critical to his saccess. Thercfonc, each YNF store works with local growers in each metropolitan area. They buy from smaller, more nespoesve, gowers that prodoce the best flowers. Each YNF store is seally just a small warehouse designd to expedite defivery from growers to customers. YNF operates a fleet of trucks used to pick up flowes ficen growers daily, At the YNF store, the flower are carefully bubdled for delivery to castomens each aftersoen. Thus, YNF muintains no iaventory and flowers move froen growers to customens in less than oee duy: Most recordiceping takes place locally. Each store lecps track of its purchases, inventaries, sales, etc. The only eentralived flunctions were writing checks, receiving payments from customers, and processing payroll. The stores regularly email records to Ma and then forwand hard-copy documents each month, 50 ste can monitor operations and provide updates to Forrest. Since, Forret plans to cuetitue expanding YNF, be wants to improve his accousting systens. He believes that eventullly be should use an online acsounting system (eloud computing) and have each stare subenit transactices dily sia the ieternet trom various smart devices, such as smartphoes and tables. Firs, he wants a thoreegh evaluation of the coots and benefins of this change. Sumuary of Intervicw with Ell, AP Clerk, Philadelphia PA Stere Eli peepares checks for payments to growers and other vendoes. The seores mail porchase documents to Eli each weck (and at the end of the month). He pays all vendoes at the end of the moeth for purchases during the month. If there are multiple purchases from the same grower or other vendoe during the month, Eli writes one check for all the purchases. After processing the payneats throegh YNF's online bunking application, Eli updates his AP spreadsheet and emails the cash disbursement recends to Min, the accounting clerk. Eli is a litle worried, though. He has no ability to verify that the checks are going to valid vendors. He just pays the vendor listed on the purchase documenes. He fech that YNF should have an appeoved vendor list. Additionally, he wanted Fonrest to consider using a coenpany crodit card for most purchases. It would reduce the worklond, errors, and delays irvolved with emiliting documents betwsen stores. Pertland stoec, buyieg flowers, prepuring flowen for delivery so castomers, making deliveries, cte. Cestuenes call to place oeden fie future flowen deliveries. Uvally, they order about cone week in advance. One order cas (and typically does) imvolve ieveral typer of flowers. The sore employees know most of the customers by name and the types of flowers they pefer. They also know whar types of flowers may not be available, so they try to seer the enders to edher flowers. They recond castemer orders in our Excel-based order log. Around 4:30 AM each morning . Paul reviews the log to determine what they aced to perthase for the day. Store cmployoes then ase YNF trocks to pick ap flowens from the local growers. They carefully select the freshest flowers, load the truck, and return to the stoee. Thcy wsoally give the grower a purchase document that identifies the purchase number (sequential), the prower namber, the parchasing employee, the track VIN (to track mileage), the type of flowers, the quanity perchased, and the purctase price. The price can fluctuate depending on the time of year and dcmand fir that purticular type of flower. On occasicn, onc purchase can involve multiple types of flowers, alithough typically one purchase is for one type af flowers. Orcasionally, the employses forget to take the purchase documcnts with them. In that case, they mail the document to the flower vendor affer they tefum to the store. When the tnick(s) neturns to the store, there is a flumy of activity. Paul collocts the purchase documents to ebeck them for any erron. Then, he scans them and emails therm to Eli for paymeat. While he docs that, an employee unloads the truck, inspect the flowers, cull out the less desirable flowers, and package them for delivery to customers in the afternoon. Paul then peepures the delivery documents. Those documents list the customers' original onder number, the oeder date, the delivery (sale) date, the truck VIN esed to deliver the flowers (to track mileage), the types and quatities of flowers to be delivered, and the sale price. YNF sets flower prices for all stores. Those prices are upditel periodically bused on expected purchase prices. Sometimes, because of weather or other factors, the wholesale prices spike, and Forrest does bot get information in time to raise prices. Paul did sot come out and say it, but be seemed a little frustrated. Wbes Fortest was net availbbie, it was sonetianes hurd to ebeck policy and get a quick decision. Nevertheless, Paul was happy working for YNF. After the tlowers are packaged, employes load them ino the trudkis) for delivery, nermally early each afternoon. Customers receive the flowers and the coereipooding delivery document. Clastomers pay for all their deliveries at the end of the month, sendine poyments to the adlless lasted en the delivery documest (currently the address of the Sae Diego stoec). After delivery, Paul apdates the onder log with the delivery information. Then each week, he erails copies of the apdused order log to Mu and Kate. For reatine administrative purthases, Patil places arders over the phoec. Then, the vendor supplies the products or services and sends an involee (or a monthly bill in the case of utility charges). Paal samps the invoice as received, seans the documctit, and emails if to Fhi. YNF is considering getling swene business credit cards lor the sloe sepervisors. That might allow them more flewbility in purchasing minor items. Paul thinks that would be a great improvement. Semmary of Interview with Kristine, Payrell Clerk, New York NY Store Kristine maintains the payroll recoeds. Fach employee fills out his or ber timecand each day, Supervisors sheck the timecards for accuracy and update the timecanl sprealhheet. At the end of each month, each store supervisor emails the timecard soreadsheer to Krittine at the Baltimore store. Kristine then prepares the payroll checks and sends them to the addrewes desigutad for each employee. She creates a spreadshect to record the payroll. Once the paymoll is procersed throwh the YNF enline banking application, Kristine emails the timecaed and payroll spreadhhets to Mia. Each quarter, Kristine summarizes the amounts due to the IRS and state tak autherities and makes those payments. Those checks are classified as miscellanecus purchases. Kristine rocently noticed that the paytoll emailk were not aleays coening from the shore managers. Ofen, other employees would send the spreadsheets. She was a limle concerned about the accuracy of the information. She thoaght that the timekeoping coula be easily anomated, whict would improve accuracy and reduce asy possilblity of fraul. She had menticesd that to Foenet, but he has been too busy to look into it. Summary of Interview with Kate, Accounts Receivable Clerk, San Diego CA Store Kate receives payments from customers at the end of each month. She assigns sequential cash receipt numbers to each incoming payment, recording the customer number, the receipt date, and the receipt amount in her spreadsheet. Each day, Kate deposits all checks received in the bank and then emails the list of cash receipts along with a copy of the deposit slip to Mia. Kate says that she is not a true accounts receivable clerk, because she never knows how much the customer owes; she just knows how much she received and deposited. Kate thinks that YNF should start aceepting credit cards for their sales. This would eliminate late payments, bad debts, and potential fraud. She admits that credit card fraud could be an issue, and YNF would have to safeguard customers" credit card information. Although the credit card companies charge a fee, YNF could have almost instant access to the cash and the related sales information. Summary of Interview with Mia, Accounting Clerk, Austin TX Store Mia had recently taken over the accounting duties for YNF and she was a little lost. She did have a degree in accounting, but she received that degree several years ago. Anyway, it was her job to get all the documents from Forrest and prepare the financial statements each quarter. YNF had grown so rapidly that they still used Excel to assemble the statements. Mia hoped that soon they would have a real accounting system. To prepare the financial statements, Mia assembles and summarizes their financial performance as follows. Income Siatements 1. Extend the sales items amounts by multiplying the quantity sold times the sale price. Restrict transactions to the quarter. 2. Accumulate sales by store during the quarter. 3. Extend the flower purchase items by multiplying the quantity purchased times the purchase price. Restrict transactions to the quarter. 4. Accumulate flower purchases as cost of goods sold by store during the quarter. 5. Extend the payroll records by adding gross pay plus employer FICA (Social Security) plus employer MC (Medicare payments) for each employee cach month. 6. Accumulate the total payroll expense by store during the quarter. 7. Aceumulate total miscellancous (administrative) purchases by store during the quarter. Note that bills are often received on the 1th of the following month for services so they need to be adjusted so they will show as expenses during the quarter. 8. Compute and accumulate depreciation expenses for stores and trucks. Quarterly depreciation expense is one quarter of the annual expense. 9. Compute income for each store as follows: a. Revenue minus cost of goods sold equals gross profit. b. Payroll plus administrative expense plus depreciation for trucks and stores equals total selling, general and administrative (SG\&A) expense. c. Income before tax equals gross profit minus SG\&A. d. Calculate gross profit, SG\&A, and income before tax as percent of revenues. 10. Accumulate one combined quarterly income statement for YNF by summarizing the store income statement. Income Statements 1. Extend the sales items amounts by multiplying the quantity sold times the sale price. Restrict transactions to the quarter. 2. Aceumulate sales by store during the quarter. 3. Extend the flower purchase items by multiplying the quantity purchased times the purchase price. Restrict transactions to the quarter. 4. Accumulate flower purchases as cost of goods sold by store during the quarter. 5. Extend the payroll records by adding gross pay plas employer FICA (Social Security) plus employer MC (Medicare payments) for each employee each month. 6. Accumulate the total payroll expense by store during the quarter. 7. Accumulate total misecllaneous (administrative) purchases by store during the quarter. Note that bills are often received on the 1"t of the following month for services so they need to be adjusted so they will show as expenses during the quarter. 8. Compute and accumulate depreciation expenses for stores and trucks. Quarterly depreciation expense is one quarter of the annual expense. 9. Compute income for each store as follows: a. Revenue minus cost of goods sold equals gross profit. b. Payroll plus administrative expense plos depreciation for trucks and stores equals total selling, general and administrative (SG\&A) expense. c. Income before tax cquals gross profit minus SGEA. d. Calculate gross profit, SGE.A, and income before tax as percent of revenues. 10. Accumulate one combined quarterly income statement for YNF by summarizing the store income statement. Balance Sheer 1. Accumulate the cash balance at the beginning of the quarter. 2. Accumulate cash receipts from saies during the quarter. 3. Accumulate cach disbursements for flower purchases during the quarter: 4. Accumulate the cash disbursements for net pay from payroll during the quarter. 5. Accumulate the cash disbursements for miscellaneous purchases during the quarter. 6. Compute the ending cash balance by calculating beginning plus cash receipts minus cash disbursenents for flower parehases minus net payroll cash disbursements minus miscellancous cash disbursements, Check that figure against the bank statement. 7. Compute accounts receivable as sales minus cash receipts for each customer and accumalate the total accounts receivable as of the end of the quarter. 8. Compute the accumulated depreciation for each store and truck. Accumulate fixed aset (storc and truck) original cost and accumulated depreciation. 9. Compute total assets as ending cash plus accounts receivable plus net fixed assets. 10. Compute trade (flowers) aceounts payable as perchases minus cash disbursements to each grower during the quarter. Accumulate total trade accounts payable. 11. Compute taxes payable by summing both the employee and employer shares of FICA and MC and both state and federal withholding. Accumulate total taxes payable. 12. Compute miscellancous liabilities as miscellancous expense minus corresponding cash disbursements during the quarter. Accumulate total miscellancous payable. 13. Compute total liabilities as trade accounts payable plus taxes payable plus miscellaneous payable. 14. Compute total equity as contributed capital ($1,000,000) plus retained eamings. Cempute retained carnings as total assets minus total liabilities minus contributed capital. 15. Compute average equity by adding beginning equity and ending equity and dividing the result by 2. Ending equity is obtained from number 14 above. Beginning equity is ending equity minus income before tax from the income statement. 16. Compute return on equity by dividing income before tax by average equity. After preparing the statements, Mia also prepares some limited performance reports comparing curtent performance against previous performance. She also checks to see which flowers have been the most popular and profitable in the quarter. fx Revenue 2021-1 YNF Financial History YNF Q1 Income Statement Income Statement + Y Not Flowers Project Summary of Interview with Ferrest Forrest Green followed in the footsteps of his Father, Tony Green, and epenr most of hes adulr life working with flowers. He worked for a large commercial flower grower whille he pot his beline degroe in horticulture for Colorado State University. After graduation, he travelod extentively to sec how flowers are grown around the world. He spent a year at the Dutch Flower Auction where European flower growers, members of the Durch Flower Wholesale Association, assembled their flowers in a 2 million square meter warchouse for buyers from around the world. He then went wene time in Kenya, which is surprisingly the 34 largest exporter of cul flowers in the world. Kenya crjoys a sumny climate that enables high-quality blossoms to be grown year-roand. Afler woeking with larpe flower distribution erganizations, he recognined the inherent problems crealed by shipping flowers around the woeld from remote locations. First, it was genting more expense as the cost of jet fual and transportation incteases. Soound, consumers were becoming more demanding. They wanted fresher flowers that lested longer Forrest ceturned to the US. intent en establishing his own flower diseributive besiness with a goal of delivering high quality, long-tasting cur flowers to his customen. There is already a larpo network of grecnhouse growers in the U.S. As of 2015, the top 100 grecnhouse gowers operatd grecnhouse Facilities msompassing over 228,900,000 square foet. Forrest plannod to use his inowiodge of thowen and flower distritution processes to open distrbution ceniers that could deliver frest-cut flowers from growers to customers in one day. To honor his Father, he opendad has fint YNor Flowers lec, store in 2009 (Y Not is Tony spelled backward). Y Not Flowens (hereafter YNF) serves wholecle cuatomers, such as flower shops, in major metropolitan areas around the US. Each YNF location (Fornest refers to then as stores) offers customers over 20 types of fresh cur flowen, wach as ruses, carmutions, tolips, etc. Their motbo is Fresh is Best. On the advioe of coubsel, Forrea incorporated Y Non Flowers jost before he opsnod the firs store. He imvested $1,000,000 in the business (contributed capital) and ii curtently the sole sharchelder. His board of directors include Abby, his sister-in-law, who also woeks at the Seatle shore, and Hert, who works at the San Diego store. The boand meets annually to discuss expunsion phans. Thcy are cumently concerned about managing any expansion, sreating incentives for the employes no deliver the frebest flowers, and finding new ways to leverage technology in the expansion. Abby reetatly pointad our that the enployee bandbook is seriously outdated and niet all stores were consistent in their basiess proeses. Forrest rocognized that his supply chain was critical to his saccess. Thercfonc, each YNF store works with local growers in each metropolitan area. They buy from smaller, more nespoesve, gowers that prodoce the best flowers. Each YNF store is seally just a small warehouse designd to expedite defivery from growers to customers. YNF operates a fleet of trucks used to pick up flowes ficen growers daily, At the YNF store, the flower are carefully bubdled for delivery to castomens each aftersoen. Thus, YNF muintains no iaventory and flowers move froen growers to customens in less than oee duy: Most recordiceping takes place locally. Each store lecps track of its purchases, inventaries, sales, etc. The only eentralived flunctions were writing checks, receiving payments from customers, and processing payroll. The stores regularly email records to Ma and then forwand hard-copy documents each month, 50 ste can monitor operations and provide updates to Forrest. Since, Forret plans to cuetitue expanding YNF, be wants to improve his accousting systens. He believes that eventullly be should use an online acsounting system (eloud computing) and have each stare subenit transactices dily sia the ieternet trom various smart devices, such as smartphoes and tables. Firs, he wants a thoreegh evaluation of the coots and benefins of this change. Sumuary of Intervicw with Ell, AP Clerk, Philadelphia PA Stere Eli peepares checks for payments to growers and other vendoes. The seores mail porchase documents to Eli each weck (and at the end of the month). He pays all vendoes at the end of the moeth for purchases during the month. If there are multiple purchases from the same grower or other vendoe during the month, Eli writes one check for all the purchases. After processing the payneats throegh YNF's online bunking application, Eli updates his AP spreadsheet and emails the cash disbursement recends to Min, the accounting clerk. Eli is a litle worried, though. He has no ability to verify that the checks are going to valid vendors. He just pays the vendor listed on the purchase documenes. He fech that YNF should have an appeoved vendor list. Additionally, he wanted Fonrest to consider using a coenpany crodit card for most purchases. It would reduce the worklond, errors, and delays irvolved with emiliting documents betwsen stores. Pertland stoec, buyieg flowers, prepuring flowen for delivery so castomers, making deliveries, cte. Cestuenes call to place oeden fie future flowen deliveries. Uvally, they order about cone week in advance. One order cas (and typically does) imvolve ieveral typer of flowers. The sore employees know most of the customers by name and the types of flowers they pefer. They also know whar types of flowers may not be available, so they try to seer the enders to edher flowers. They recond castemer orders in our Excel-based order log. Around 4:30 AM each morning . Paul reviews the log to determine what they aced to perthase for the day. Store cmployoes then ase YNF trocks to pick ap flowens from the local growers. They carefully select the freshest flowers, load the truck, and return to the stoee. Thcy wsoally give the grower a purchase document that identifies the purchase number (sequential), the prower namber, the parchasing employee, the track VIN (to track mileage), the type of flowers, the quanity perchased, and the purctase price. The price can fluctuate depending on the time of year and dcmand fir that purticular type of flower. On occasicn, onc purchase can involve multiple types of flowers, alithough typically one purchase is for one type af flowers. Orcasionally, the employses forget to take the purchase documcnts with them. In that case, they mail the document to the flower vendor affer they tefum to the store. When the tnick(s) neturns to the store, there is a flumy of activity. Paul collocts the purchase documents to ebeck them for any erron. Then, he scans them and emails therm to Eli for paymeat. While he docs that, an employee unloads the truck, inspect the flowers, cull out the less desirable flowers, and package them for delivery to customers in the afternoon. Paul then peepures the delivery documents. Those documents list the customers' original onder number, the oeder date, the delivery (sale) date, the truck VIN esed to deliver the flowers (to track mileage), the types and quatities of flowers to be delivered, and the sale price. YNF sets flower prices for all stores. Those prices are upditel periodically bused on expected purchase prices. Sometimes, because of weather or other factors, the wholesale prices spike, and Forrest does bot get information in time to raise prices. Paul did sot come out and say it, but be seemed a little frustrated. Wbes Fortest was net availbbie, it was sonetianes hurd to ebeck policy and get a quick decision. Nevertheless, Paul was happy working for YNF. After the tlowers are packaged, employes load them ino the trudkis) for delivery, nermally early each afternoon. Customers receive the flowers and the coereipooding delivery document. Clastomers pay for all their deliveries at the end of the month, sendine poyments to the adlless lasted en the delivery documest (currently the address of the Sae Diego stoec). After delivery, Paul apdates the onder log with the delivery information. Then each week, he erails copies of the apdused order log to Mu and Kate. For reatine administrative purthases, Patil places arders over the phoec. Then, the vendor supplies the products or services and sends an involee (or a monthly bill in the case of utility charges). Paal samps the invoice as received, seans the documctit, and emails if to Fhi. YNF is considering getling swene business credit cards lor the sloe sepervisors. That might allow them more flewbility in purchasing minor items. Paul thinks that would be a great improvement. Semmary of Interview with Kristine, Payrell Clerk, New York NY Store Kristine maintains the payroll recoeds. Fach employee fills out his or ber timecand each day, Supervisors sheck the timecards for accuracy and update the timecanl sprealhheet. At the end of each month, each store supervisor emails the timecard soreadsheer to Krittine at the Baltimore store. Kristine then prepares the payroll checks and sends them to the addrewes desigutad for each employee. She creates a spreadshect to record the payroll. Once the paymoll is procersed throwh the YNF enline banking application, Kristine emails the timecaed and payroll spreadhhets to Mia. Each quarter, Kristine summarizes the amounts due to the IRS and state tak autherities and makes those payments. Those checks are classified as miscellanecus purchases. Kristine rocently noticed that the paytoll emailk were not aleays coening from the shore managers. Ofen, other employees would send the spreadsheets. She was a limle concerned about the accuracy of the information. She thoaght that the timekeoping coula be easily anomated, whict would improve accuracy and reduce asy possilblity of fraul. She had menticesd that to Foenet, but he has been too busy to look into it. Summary of Interview with Kate, Accounts Receivable Clerk, San Diego CA Store Kate receives payments from customers at the end of each month. She assigns sequential cash receipt numbers to each incoming payment, recording the customer number, the receipt date, and the receipt amount in her spreadsheet. Each day, Kate deposits all checks received in the bank and then emails the list of cash receipts along with a copy of the deposit slip to Mia. Kate says that she is not a true accounts receivable clerk, because she never knows how much the customer owes; she just knows how much she received and deposited. Kate thinks that YNF should start aceepting credit cards for their sales. This would eliminate late payments, bad debts, and potential fraud. She admits that credit card fraud could be an issue, and YNF would have to safeguard customers" credit card information. Although the credit card companies charge a fee, YNF could have almost instant access to the cash and the related sales information. Summary of Interview with Mia, Accounting Clerk, Austin TX Store Mia had recently taken over the accounting duties for YNF and she was a little lost. She did have a degree in accounting, but she received that degree several years ago. Anyway, it was her job to get all the documents from Forrest and prepare the financial statements each quarter. YNF had grown so rapidly that they still used Excel to assemble the statements. Mia hoped that soon they would have a real accounting system. To prepare the financial statements, Mia assembles and summarizes their financial performance as follows. Income Siatements 1. Extend the sales items amounts by multiplying the quantity sold times the sale price. Restrict transactions to the quarter. 2. Accumulate sales by store during the quarter. 3. Extend the flower purchase items by multiplying the quantity purchased times the purchase price. Restrict transactions to the quarter. 4. Accumulate flower purchases as cost of goods sold by store during the quarter. 5. Extend the payroll records by adding gross pay plus employer FICA (Social Security) plus employer MC (Medicare payments) for each employee cach month. 6. Accumulate the total payroll expense by store during the quarter. 7. Aceumulate total miscellancous (administrative) purchases by store during the quarter. Note that bills are often received on the 1th of the following month for services so they need to be adjusted so they will show as expenses during the quarter. 8. Compute and accumulate depreciation expenses for stores and trucks. Quarterly depreciation expense is one quarter of the annual expense. 9. Compute income for each store as follows: a. Revenue minus cost of goods sold equals gross profit. b. Payroll plus administrative expense plus depreciation for trucks and stores equals total selling, general and administrative (SG\&A) expense. c. Income before tax equals gross profit minus SG\&A. d. Calculate gross profit, SG\&A, and income before tax as percent of revenues. 10. Accumulate one combined quarterly income statement for YNF by summarizing the store income statement. Income Statements 1. Extend the sales items amounts by multiplying the quantity sold times the sale price. Restrict transactions to the quarter. 2. Aceumulate sales by store during the quarter. 3. Extend the flower purchase items by multiplying the quantity purchased times the purchase price. Restrict transactions to the quarter. 4. Accumulate flower purchases as cost of goods sold by store during the quarter. 5. Extend the payroll records by adding gross pay plas employer FICA (Social Security) plus employer MC (Medicare payments) for each employee each month. 6. Accumulate the total payroll expense by store during the quarter. 7. Accumulate total misecllaneous (administrative) purchases by store during the quarter. Note that bills are often received on the 1"t of the following month for services so they need to be adjusted so they will show as expenses during the quarter. 8. Compute and accumulate depreciation expenses for stores and trucks. Quarterly depreciation expense is one quarter of the annual expense. 9. Compute income for each store as follows: a. Revenue minus cost of goods sold equals gross profit. b. Payroll plus administrative expense plos depreciation for trucks and stores equals total selling, general and administrative (SG\&A) expense. c. Income before tax cquals gross profit minus SGEA. d. Calculate gross profit, SGE.A, and income before tax as percent of revenues. 10. Accumulate one combined quarterly income statement for YNF by summarizing the store income statement. Balance Sheer 1. Accumulate the cash balance at the beginning of the quarter. 2. Accumulate cash receipts from saies during the quarter. 3. Accumulate cach disbursements for flower purchases during the quarter: 4. Accumulate the cash disbursements for net pay from payroll during the quarter. 5. Accumulate the cash disbursements for miscellaneous purchases during the quarter. 6. Compute the ending cash balance by calculating beginning plus cash receipts minus cash disbursenents for flower parehases minus net payroll cash disbursements minus miscellancous cash disbursements, Check that figure against the bank statement. 7. Compute accounts receivable as sales minus cash receipts for each customer and accumalate the total accounts receivable as of the end of the quarter. 8. Compute the accumulated depreciation for each store and truck. Accumulate fixed aset (storc and truck) original cost and accumulated depreciation. 9. Compute total assets as ending cash plus accounts receivable plus net fixed assets. 10. Compute trade (flowers) aceounts payable as perchases minus cash disbursements to each grower during the quarter. Accumulate total trade accounts payable. 11. Compute taxes payable by summing both the employee and employer shares of FICA and MC and both state and federal withholding. Accumulate total taxes payable. 12. Compute miscellancous liabilities as miscellancous expense minus corresponding cash disbursements during the quarter. Accumulate total miscellancous payable. 13. Compute total liabilities as trade accounts payable plus taxes payable plus miscellaneous payable. 14. Compute total equity as contributed capital ($1,000,000) plus retained eamings. Cempute retained carnings as total assets minus total liabilities minus contributed capital. 15. Compute average equity by adding beginning equity and ending equity and dividing the result by 2. Ending equity is obtained from number 14 above. Beginning equity is ending equity minus income before tax from the income statement. 16. Compute return on equity by dividing income before tax by average equity. After preparing the statements, Mia also prepares some limited performance reports comparing curtent performance against previous performance. She also checks to see which flowers have been the most popular and profitable in the quarter