prepare the below Pro forma Financial Statements for the proposed new location (in this case the pro forma statements are the budgeted statements for 2018 based on the new location scenario at the bottom of the page)

Pro forma Income Statement

Pro forma Balance Sheet

PEYTON APPROVED PRO FORM INFORMATION

The company plans to open another location in 2018. Prepare the 2018 pro forma financial statements for the new location using the following information:

1. Commercial space rental cost: $1,500 per month.

2. Cost of new equipment: $15,000. Use the straight-line method of depreciation, assuming a life of seven years. For the first year, use the full year's depreciation.

3. Cost of hiring and training new employees: three people at $25,000 each for the first year.

4. Except as specified in 5, assets, current liabilities, sales, costs and expenses are expected to be 80% of the current store (from preliminary statements) excluding inventory. Retained earnings = net income.

5. Cash: $7,000. The amount of accounts receivable is 4.0 rollover (accounts receivable rollover rate will be 4.0); inventory amount will show 3.0 rounds (stock turnover rate will be 3.0). No stock will be issued. Retained earnings will equal net income. Additional funding of $5,000 will be long-term. Add the remaining amount needed to balance accounts payable.

Peyton Approved
Balance
As of 31 December 2017
assets					Liabilities and equity
	Current Assets:					Current Liabilities:
	in advance	68,520,04				Accounts payable	23,437,11
	Accounts receivable	68,719,91				Fees Payable	3.383,28
	Baking Ingredients	18,681,70				Interest payable	211.46
	goods inventory	1,238,07				Customer Deposit	1,000,00
	prepaid rental	2,114,55
	prepaid insurance	2,114,55
	Miscellaneous Supply	170,49
	Other Receivables - Insurance	700,00
	Shipment Inventory	-200
	Total current assets		162,059,31			Total current responsibilities		28,031,85
						Long-term liabilities:
	Long Term/Fixed Assets:					Notes payable	5.000,00
	Cooking Equipment	12,000,00				Total Long-Term Liabilities:		5,000,00
	Accumulated Depreciation	-406,44
	Net fixed assets		11,593,56			Total liabilities:		33,031,85
						stock	20,000,00
						Retained earnings	120,621,02
						Total Equity		140,621,02
	Total Assets:		173.652,87			Total liabilities and equity		173.652,87

Peyton Approved
Income statement
For the Year Ended on 31.12.2017
Bakery Sales		327.322,55 $
Product Sales		1.205,64
Total revenue			328.528,19
Cost of Goods Sold - Cooked		105.834,29
Cost of Goods Sold - Goods		859.77
Total Cost of Goods Sold			106.694,06
Gross profit			221.834,13
Operating expenses:
Loss related to disposal of equipment		100.00
Rent		24.549,19
Fee Expense		10.670,72
Miscellaneous Material Expense		3.000,46
Operating License Expense		2.045,77
miscellaneous expense		1.363,84
Depreciation Expense		677,86
insurance cost		1.091,08
Ad spend		1.549,74
interest expense		818.31
Phone Expense		490,98
Total operating expenses:			46.357,95
Net income			175.476.18