Refer to the data below and use the Final Project Workbook that includes the income statement, balance sheet, retained earnings statement and cash flow statement to complete the final project and associated milestones.

Peyton Approved Financial Data: Preliminary Financial Statements have already been prepared (2017 statements in the Final Project Workbook). Final adjusting entries have not yet been made. See table for possible adjustments that indicate what will be recorded at 12/31/17 (fiscal year end). Use the following to complete year-to-year documentation and notes for managing depreciation, inventory, and long-term debt.

A supplier shipped $3,000 of ingredients on 12/29/17. Peyton receives an invoice for the goods, as well as a bill for freight for $175, all dated 12/29/17. Goods were shipped FOB suppliers warehouse.

At 12/31/17, Peyton has $200 worth of merchandise on consignment at Brunos House of Bacon.

On 12/23/17, Peyton received $1,000 deposit from Pet Globe for product to be shipped by Peyton in the second week of January.

On 12/03/2017, a mixer with a cost of $2,000, accumulated depreciation $1,200, was destroyed by a forklift. As of 12/23/17, insurance company has agreed to pay $700 in January, 2018, for accidental destruction.

Note about later borrowing - financials will show loan from parents repaid and use of bank financing.

The company is planning to open another location in 2018. Prepare pro forma financials for 2018 for the new location using the following information:

Cost of leasing commercial space: $1,500 per month.

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.

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

Except as noted below, 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.

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.

For notes to the financial statements and Management Analysis Memo, consider the following:

Peyton Approved uses the following accounting practices:

Inventory: Periodic, LIFO for both baking and merchandise

Baking supplies: $27,850 ending inventory

Equipment: Straight line method used for equipment

Business Financing Information: Use this information to calculate interest rates and insurance information, and to assess their impact on the companys financial obligations:

6% interest note payable was made on Jan 31, 2017, and is due Feb 1, 2019.

5-year loan was made on June 1, 2016. Terms are 7.5% annual rate, interest only until due date.

Insurance: Annual policy covers 12 months, purchased in February, covering March 2017 to February 2018. No monthly adjustments have been made.

Peyton Approved
Income Statement
For Year Ended 12/31/2017
Bakery Sales				$ 327,322.55
Merchandise Sales				1,205.64
Total Revenues					328,528.19
Cost of Goods Sold - Baked				105,834.29
Cost of Goods Sold - Merchandise				859.77
Total Cost of Goods Sold					106,694.06
Gross Profit					221,834.13
Operating Expenses:
Rent Expense				24,549.19
Wages Expense				10,670.72
Misc. Supplies Expense				3,000.46
Business License Expense				2,045.77
Misc. Expense				1,363.84
Depreciation Expense				677.86
Insurance Expense				1091.08
Advertising Expense				1,549.74
Interest Expense				818.31
Telephone Expense				490.98
Gain/Loss on disposal of equipment				100.00
Total Operating Expenses:					46357.95
Net Income					175476.18

Peyton Approved
Balance Sheet
As of December 31, 2017
Assets					Liabilities and Owners' Equity
	Current Assets:					Current Liabilities:
	Cash	68,520.04				Accounts Payable	23,437.11
	Accounts Receivable	68,519.91				Wages Payable	3,383.28
	Baking Supplies	18,681.70				Interest Payable	211.46
	Consignment Inventory	200.00				Customer Deposit	1,000.00
	Merchandise Inventory	1,038.07
	Prepaid Rent	2,114.55
	Prepaid Insurance	2114.55
	Misc. Supplies	170.49
	Other Receivable - Insurance	700.00
						Total Current Liabilities		28,031.85
	Total Current Assets		162059.31
						Long Term Liabilities:
						Notes Payable	5,000.00
	Long Term/Fixed Assets:					Total Long Term Liabilities:		5,000.00
	Baking Equipment	12,000.00
	Accumulated Depreciation	(406.44)				Total Liabilities:		33,031.85
	Net Fixed assets		11,593.56
						Common Stock	20,000.00
						Retained Earnings	120621.02
						Total Equity		140621.02
			173652.87			Total Liabilities & Equity		173652.87
	Total Assets:

I got feed back and i have some errors that i dont know how to fix. Can you please fix and show calculations of how you for the numbers please?

261,858.04 964.51 66 66 $ Bakery Sales Merchandise Sales Total Revenues Cost of Goods Sold - Baked Cost of Goods Sold - Merchandise Total Cost of Goods Sold Gross Profit 262,822.55 84.667.43 687.82 $ $ 85,355.25 177,467.30 Operating Expenses Rent Expense Wages Expense Misc. Supplies Expense Business License Expense Misc. Expense Depreciation Expense Insurance Expense Advertising Expense Interest Expense Telephone Expense Total Operating Expenses: $ $ 18,000.00 75,000.00 2,400.37 1,636.62 1,091.07 2,142.86 872.86 1,239.79 353.50 INCORRECT 392.78 $ 103,129.85 $ $ $ Net Income $ 74,337.45 Liabilities and Owners' Equity Current Liabilities: Accounts Payable S Wages Payable Interest Payable 696 446.78 INCORRECT 2,708.62 169.17 Current Assets: Cash Accounts Receivable Baking Supplies Merchandise Inventory Prepaid Rent Prepaid Insurance Misc Supplies $ 7,000.00 $ 65,705.64 S 14.945.36 INCORRECT S 229.27 1,691.64 S 174.57 INCORRECT $ 136.39 Total Current Assets Total Current Liabilities $ 89,882.87 $ 3,322.57 Long Term Liabilities: Notes Payable S 5,000.00 INCORRECT Long Term Fixed Assets: New Equipment Accumulated Depreciation $ 15,000.00 $ (2.142.86) Total Long Term Liabilities: $ 5,000.00 Net Fixed assets Total Liabilities: $ 12,857.14 $ 8,322.57 Common Stock Retained Earnings s S Total Assets: 74,337.45 INCORRECT 102.740.02 Total Equity S 74,337.45 Total Liabilities & Equity $ 82,660.02 261,858.04 964.51 66 66 $ Bakery Sales Merchandise Sales Total Revenues Cost of Goods Sold - Baked Cost of Goods Sold - Merchandise Total Cost of Goods Sold Gross Profit 262,822.55 84.667.43 687.82 $ $ 85,355.25 177,467.30 Operating Expenses Rent Expense Wages Expense Misc. Supplies Expense Business License Expense Misc. Expense Depreciation Expense Insurance Expense Advertising Expense Interest Expense Telephone Expense Total Operating Expenses: $ $ 18,000.00 75,000.00 2,400.37 1,636.62 1,091.07 2,142.86 872.86 1,239.79 353.50 INCORRECT 392.78 $ 103,129.85 $ $ $ Net Income $ 74,337.45 Liabilities and Owners' Equity Current Liabilities: Accounts Payable S Wages Payable Interest Payable 696 446.78 INCORRECT 2,708.62 169.17 Current Assets: Cash Accounts Receivable Baking Supplies Merchandise Inventory Prepaid Rent Prepaid Insurance Misc Supplies $ 7,000.00 $ 65,705.64 S 14.945.36 INCORRECT S 229.27 1,691.64 S 174.57 INCORRECT $ 136.39 Total Current Assets Total Current Liabilities $ 89,882.87 $ 3,322.57 Long Term Liabilities: Notes Payable S 5,000.00 INCORRECT Long Term Fixed Assets: New Equipment Accumulated Depreciation $ 15,000.00 $ (2.142.86) Total Long Term Liabilities: $ 5,000.00 Net Fixed assets Total Liabilities: $ 12,857.14 $ 8,322.57 Common Stock Retained Earnings s S Total Assets: 74,337.45 INCORRECT 102.740.02 Total Equity S 74,337.45 Total Liabilities & Equity $ 82,660.02