Question
This is what i used the to create the 2018 pro forma i/s and b/s PEYTON APPROVED PRO FORMA INFORMATION The company is planning to
This is what i used the to create the 2018 pro forma i/s and b/s
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. Use straight line depreciation assuming a seven-year life. Use full years depreciation for the first year. | |||||||||||
3. Cost of hiring and training new employees: three at $25,000 each for the first year. | |||||||||||
4. Except as noted in 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. |
II. Notes to the Financial Statements: Your notes must contain the following: A. Create appropriate notes as year-to-year documentation for managing depreciation, supplies, and inventory.
III. Management Analysis Brief: Your management analysis brief should explain financial information to management. Provide evidence from your accounting workbook to support your ideas where applicable. A. Discuss the impact of the pro forma financial statements for predicting ability to meet future expansion goals. B. Describe the implications of inventory costing, contingent liabilities, and revenue recognition. C. Identify potential issues in interpretation of financial information, providing examples to support your ideas.
Preliminary Peyton Approved Balance Shee 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 20,262.11 3,383.28 211.46 67,520.04 68,519.91 15,506.70 1,238.07 2,114.55 2,114.55 170.49 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 Liabilities: 28,856.85 20,000.00 120,721.02 Common Stock Retained Earnings Total Equity Total Liabilities & Equity 140,721.02 Total Assets 169,577.87 169,577.87 Preliminary Peyton Approved Balance Shee 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 20,262.11 3,383.28 211.46 67,520.04 68,519.91 15,506.70 1,238.07 2,114.55 2,114.55 170.49 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 Liabilities: 28,856.85 20,000.00 120,721.02 Common Stock Retained Earnings Total Equity Total Liabilities & Equity 140,721.02 Total Assets 169,577.87 169,577.87Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started