Proforma Income statement and Balance sheet

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 longterm note. Use straight line depreciation assuming a sevenyear life, no residual value. Use full year's depreciation for the first year. Equipment purchase was financed with a longterm 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 Income Statement for Year Ended 12/31/2017 \begin{tabular}{l|r|r|} \hline Bakery Sales & $327,322.55 & \\ \hline MerchandiseSalesTotalRevenues & 1,205.64 & \\ \hline & & 328,528.19 \\ \hline Cost of Goods Sold - Baked & 105,834.29 & \\ \hline Cost of Goods Sold - Merchandis & 859.77 & 106,694.06 \\ \hline Total Cost of Goods Sold & & 221,834.13 \\ Gross Profit & & \end{tabular} Operating Expenses: Net Income 175,476.18 As of December 31, 2017 Peyton Approved Second Location Pro Forma Income Statement for Year Ending 12/31/2018 Bakery Sales Merchandise Sales Total Revenues Cost of Goods Sold - Baked Cost of Goods Sold - Merchandise Total Cost of Goods Sold Gross Profit Operating Expenses: Rent Expense Wages Expense Misc. Supplies Expense Business License Expense Misc. Expense Depreciation Expense Insurance Expense Advertising Expense Interest Expense Traing and hiring expense Telephone Expense Total Operating Expenses: Net Income Peyton Approved Second Location Pro Forma Balance Sheet As of December 31, 2018 Assets Liabilities and Owners' Equity Current Assets: Current Liabilities: Cash Accounts Payable Accounts Receivable Wages Payable Baking Supplies Interest Payable Merchandise Inventory Prepaid Rent Prepaid Insurance Misc. Supplies Total Current Assets Total Current Liabilities Long Term Liabilities: Long Term/Fixed Assets: Notes Payable Baking Equipment Total Long Term Liabilities: Accumulated Depreciation Net Fixed assets Total Liabilities: Common Stock Retained Earnings Total Equity Total Assets: Total Liabilities \& Equity