Help with Proforma Invoice :)

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 years 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. 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.

5. Except as noted above, 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

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 years 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. 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.

5. Except as noted above, 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

Previous statements Attached

Thank you!

Peyton Approved Balance Sheet As of December 31, 2017 Liabilities and Owners' Equity Current Liabilities: Accounts Payable Wages Payable Interest Payable Customer Deposit $ 23,437.11 3,383 28 211.46 1000 Assets Current Assets: Cash Accounts Receivable Other relevables- Insurance Baking Suppies Merchandise Inventory Consignment inventory Prepaid Rent Prepaid Insurance Misc. Supplies Total Current Assets $ 68,520.04 88,519.91 700.00 18,681.70 1.038.07 200.00 2,114.55 2,114.55 170.49 $ 162,059.31 Total Current Liabilities $ 28,031.85 Long Term Liabilities: Notes Payable Total Long Term Liabilities: Long Tem/Fixed Assets: Baking Equipment Accumulated Depreciation Net Fixed assets 5,000.00 5,000.00 12,000.00 -406.44 11,593.56 Total Liabilities: 33,031.85 Common Stock Retained Earnings 20,000.00 120,621.02 Total Equity 140.621.02 Total Assets 173,652.87 Total Liabilities & Equity $173,652.87 Peyton Approved Income Statement for Year Ended 12/31/2017 $327,322.55 1,205.64 328,528.19 Bakery Sales Merchandise Sales Total Revenues Cost of Goods Sold - Baked Cost of Goods Sold - Merchandise Total Cost of Goods Sold Gross Profit 105,834.29 859.77 106,694.06 221,834.13 Operating Expenses Rent Expense Wages Expense Misc. Supplies Expense Business License Expense Misc. Expense Depreciation Expense Insurance Expense Advertising Expense Interest Expense Telephone Expense Gain/Loss on disposal of equipment Total Operating Expenses: 24,549.19 10,670.72 3,000.46 2,045.77 1,363.84 677.86 1,091.08 1,549.74 818.31 490.98 100.00 46,357.95 Net Income 175,476.18