ACC308 Milestone Two Guidelines and Rubric

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Trial Balance 2017

Milestone One Workbook Instructions
					PEYTON APPROVED
					TRIAL BALANCE
					As of December 31, 2017
			Unadjusted trial balance					Adjusting entries				Adjusted trial balance
		Dr		Cr		ref	Dr		Cr	ref	Dr		Cr
	Cash	67,520.04				3	1,000.00				68,520.04
	Accounts Receivable	68,519.91									68,519.91
	Other Receivable - Insurance					4	700.00				700.00
	Baking Supplies	15,506.70				1	3,175.00				18,681.70
	Merchandise Inventory	1,238.07							200.00	2	1,038.07
	Consignment Inventory					2	200.00				200.00
	Prepaid Rent	2,114.55									2,114.55
	Prepaid Insurance	2,114.55									2,114.55
	Misc. Supplies	170.49									170.49
	Baking Equipment	14,000.00							2,000.00	4	12,000.00
	Accumulated Depreciation			1,606.44		4	1,200.00						406.44
	Customer Deposit								1,000.00	3			1,000.00
	Accounts Payable			20,262.11					3,175.00	1			23,437.11
	Wages Payable			3,383.28									3,383.28
	Interest Payable			211.46									211.46
	Notes Payable			5,000.00									5,000.00
	Common Stock			20,000.00									20,000.00
	Beginning Retained earnings			50,144.84									50,144.84
	Dividends	105,000.00									105,000.00
	Bakery Sales			327,322.55									327,322.55
	Merchandise Sales			1,205.64									1,205.64
	Cost of Goods Sold - Baked	105,834.29									105,834.29
	Cost of Goods Sold - Merchandise	859.77									859.77
	Rent Expense	24,549.19									24,549.19
	Wages Expense	10,670.72									10,670.72
	Misc. Supplies Expense	3,000.46									3,000.46
	Business License Expense	2,045.77									2,045.77
	Misc. Expense	1,363.84									1,363.84
	Depreciation Expense	677.86									677.86
	Insurance Expense	1,091.08									1,091.08
	Advertising Expense	1,549.74									1,549.74
	Interest Expense	818.31									818.31
	Telephone Expense	490.98									490.98
	Gain/Loss on disposal of equipment					4	100.00				100.00
		429,136.32		429,136.32			6,375.00		6,375.00		432,111.32		432,111.32

Balance Sheet 2017

	Preliminary
			Peyton Approved
			Balance Sheet
			As of December 31, 2017
Assets				Liabilities and Owners' Equity
	Current Assets:				Current Liabilities:
	Cash	$ 67,520.04			Accounts Payable	$ 20,262.11
	Accounts Receivable	68,519.91			Wages Payable	3,383.28
	Baking Supplies	15,506.70			Interest Payable	211.46
	Merchandise Inventory	1,238.07
	Prepaid Rent	2,114.55
	Prepaid Insurance	2,114.55
	Misc. Supplies	170.49
	Total Current Assets		$ 157,184.31		Total Current Liabilities		$ 23,856.85
					Long Term Liabilities:
	Long Term/Fixed Assets:				Notes Payable	5,000.00
	Baking Equipment	14,000.00			Total Long Term Liabilities:		5,000.00
	Accumulated Depreciation	-1,606.44
	Net Fixed assets		12,393.56		Total Liabilities:		28,856.85
					Common Stock	20,000.00
					Retained Earnings	120,721.02
					Total Equity		140,721.02
	Total Assets:		$ 169,577.87		Total Liabilities & Equity		$ 169,577.87

Balance Sheet 2017 Revised

	Milestone One Workbook Instructions		Revised
				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
	Other Receivable - Insurance	700.00				Interest Payable	211.46
	Baking Supplies	18,881.70				Customer Deposit	1000.00
	Merchandise Inventory	1,038.07
	Prepaid Rent	2,114.55
	Prepaid Insurance	2,114.55
	Misc. Supplies	170.49
	Total Current Assets		$ 162,059.31			Total Current Liabilities		$ 28,031.85
						Long Term Liabilities:
	Long Term/Fixed Assets:					Notes Payable	5,000.00
	Baking 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
						Common Stock	20,000.00
						Retained Earnings	120,621.02
						Total Equity		140,621.02
	Total Assets:		$ 173,652.87			Total Liabilities & Equity		$ 173,652.87

Income Statement 2017

Preliminary
	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		1,091.08
Advertising Expense		1,549.74
Interest Expense		818.31
Telephone Expense		490.98
Total Operating Expenses:			46,257.95
Net Income			175,576.18

Income Statement 2017 Revised

Milestone One Workbook Instructions
	Revised
		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		1,091.08
	Advertising Expense		1,549.74
	Interest Expense		818.31
	Telephone Expense		490.98
	Loss on Disposal of Equipment		100.00
	Total Operating Expenses:			46,357.95
	Net Income			175,476.18

Retained Earnings 2017

Preliminary
	Peyton Approved
	Statement of Retained Earnings
	for Year Ended 12/31/2017
Beginning Balance:		$ 50,144.84
plus Net Income		175,576.18
less Dividends:		105,000.00
Ending Balance		$ 120,721.02

Retained Earnings 2017 Revised

Milestone One Workbook Instructions
	Revised
		Peyton Approved
		Statement of Retained Earnings
		for Year Ended 12/31/2017
	Beginning Balance:		$ 50,144.84
	plus Net Income		175,476.18
	less Dividends:		105,000.00
	Ending Balance		$ 120,621.02

Cash Flow 2017

Preliminary
			Peyton Approved
			Statement of Cash Flow
			for Year Ended 12/31/2017
	Net Income			$ 175,576.18
	Depreciation Expense			677.86
					176,254.04
	Increase in Accounts Receivable				(25,886.91)
	Increase in Baking Supplies				(8,187.84)
	Increase in Merchandise inventory				(443.10)
	Increase in Prepaid Rent				(449.55)
	Increase in Prepaid Insurance				(1,004.55)
	Increase in Misc. Supplies				(114.99)
	Increase in Accounts Payable				3,292.11
	Increase in Wages Payable				1,850.48
	Increase in Interest Payable				44.96
		Operating Cash Flow				145,354.65
	Cash Flow from Investments
	Equipment Purchases				(6,000.00)
		Cash Flow from Investments				(6,000.00)
	Cash Flow from Financing
	Repayment of Note Payable				(10,000.00)
	Dividends Paid				(105,000.00)
		Cash Flow from Financing				(115,000.00)
		Net Cash Flow				24,354.65
	Beginning Cash					43,165.39
	Ending Cash					67,520.04

Cash Flow 2017 Revised

Milestone One Workbook Instructions
	Revised
		Peyton Approved
		Statement of Cash Flow
		for Year Ended 12/31/2017
Net Income			$ 175,476.18
Depreciation Expense			677.86
Loss on Disposal of Equipment			100.00
				176,254.04
Increase in Accounts Receivable				(25,886.91)
Increase in Other Receivable - Insurance				(700.00)
Increase in Baking Supplies				(11,562.84)
Increase in Merchandise Inventory				(243.10)
Increase in Prepaid Rent				(449.55)
Increase in Prepaid Insurance				(1,004.55)
Increase in Misc. Supplies				(114.99)
Increase in Customer Deposit				1,000.00
Increase in Accounts Payable				6,467.11
Increase in Wages Payable				1,850.48
Increase in Interest Payable				44.96
	Operating Cash Flow				145,654.65
Cash Flow from Investments
Equipment Purchases				(5,300.00)
	Cash Flow from Investments				(5,300.00)
Cash Flow from Financing
Repayment of Note Payable				(10,000.00)
Dividends Paid				(105,000.00)
	Cash Flow from Financing				(115,000.00)
	Net Cash Flow				25,354.65
Beginning Cash					43,165.39
Ending Cash					68,520.04
		0

Balance sheet 2015

				Peyton Approved
				Balance Sheet
				As of December 31, 2015
Assets					Liabilities and Owners' Equity
	Current Assets:					Current Liabilities:
	Cash	31507.58				Accounts Payable	15086.84
	Accounts Receivable	35118.97				Wages Payable	1118.83
	Baking Supplies	8042.23				Interest Payable	121.53
	Merchandise Inventory	580.27
	Prepaid Rent	1215.32
	Prepaid Insurance	810.21
	Misc. Supplies	40.51
	Total Current Assets		77,315.09			Total Current Liabilities		16,327.20
						Long Term Liabilities:
	Long Term/Fixed Assets:					Notes Payable	10,000.00
	Baking Equipment	6000				Total Long Term Liabilities:		10,000.00
	Accumulated Depreciation	-677.79
	Net Fixed assets		5,322.21			Total Liabilities:		26,327.20
						Common Stock	20,000.00
						Retained Earnings	36,310.10
						Total Equity		56,310.10
	Total Assets:		82,637.30			Total Liabilities & Equity		82,637.30

Balance Sheet 2016

				Peyton Approved
				Balance Sheet
				As of December 31, 2016
Assets					Liabilities and Owners' Equity
	Current Assets:					Current Liabilities:
	Cash	43,165.39				Accounts Payable	16,970.00
	Accounts Receivable	42,633.00				Wages Payable	1,532.80
	Baking Supplies	7,318.86				Interest Payable	166.50
	Merchandise Inventory	794.97
	Prepaid Rent	1,665.00
	Prepaid Insurance	1,110.00
	Misc. Supplies	55.50
	Total Current Assets		96,742.72			Total Current Liabilities		18,669.30
						Long Term Liabilities:
	Long Term/Fixed Assets:					Notes Payable	15,000.00
	Baking Equipment	8,000.00				Total Long Term Liabilities:		15,000.00
	Accumulated Depreciation	-928.58
	Net Fixed assets		7,071.42			Total Liabilities:		33,669.30
						Common Stock	20,000.00
						Retained Earnings	50,144.84
						Total Equity		70,144.84
	Total Assets:		103,814.14			Total Liabilities & Equity		103,814.14

Income Statement 2016

	Peyton Approved
	Income Statement
	for Year Ended 12/31/2016
Bakery Sales		214,256.48
Merchandise Sales		770.76
Total Revenues			215,027.24
Cost of Goods Sold - Baked		73,159.59
Cost of Goods Sold - Merchandise		549.64
Total Cost of Goods Sold			73,709.23
Gross Profit			141,818.01
Operating Expenses:
Rent Expense		15,694.23
Wages Expense		6,821.76
Misc. Supplies Expense		1,668.18
Business License Expense		1,307.85
Misc. Expense		871.9
Depreciation Expense		433.36
Insurance Expense		697.52
Advertising Expense		740.74
Interest Expense		523.14
Telephone Expense		313.88
Total Operating Expenses:			29,072.56
Net Income			112,745.45

Ratio Analysis

Milestone One Workbook Instructions
	Peyton Approved
	Ratio Analysis
	2017	2016
Current Ratio (Working Capital)	5.78	5.18
Quick Ratio	4.89	4.60
A/R Turnover	5.91	5.53
Inventory Turnover	7.61	8.81
Gross Margin	0.68	0.66
Return on Sales	0.53	0.52
Return on Equity	1.25	1.61
Return on Assets	1.01	1.09

Pro Forma IS

Milestone Two Workbook Instructions
		Peyton Approved Second Location
		Pro Forma Income Statement
		for Year Ending 12/31/2018
	Bakery Sales		$ 261,858.04
	Merchandise Sales		$ 964.51
	Total Revenues			$ 262,822.55
	Cost of Goods Sold - Baked		$ 84,667.43
	Cost of Goods Sold - Merchandise		$ 687.82
	Total Cost of Goods Sold			$ 85,355.25
	Gross Profit			$ 177,467.30
	Operating Expenses:
	Rent Expense		$ 18,000.00
	Wages Expense		$ 75,000.00
	Misc. Supplies Expense		$ 2,400.37
	Business License Expense		$ 1,636.62
	Misc. Expense		$ 1,091.07
	Depreciation Expense		$ 2,142.86
	Insurance Expense		$ 872.86
	Advertising Expense		$ 1,239.79
	Interest Expense		$ 654.65
	Telephone Expense		$ 392.78
	Total Operating Expenses:			$ 103,431.00
	Net Income			$ 74,036.30

Pro Forma BS

	Milestone Two Workbook Instructions
			Peyton Approved Second Location
			Pro Forma Balance Sheet
			As of December 31, 2018
Assets				Liabilities and Owners' Equity
	Current Assets:				Current Liabilities:
	Cash	$ 7,000.00			Accounts Payable	$ 20,622.11
	Accounts Receivable	$ 65,705.64			Wages Payable	$ 2,706.62
	Baking Supplies	$ 28,222.48			Interest Payable	$ 169.17
	Merchandise Inventory	$ 229.27
	Prepaid Rent	$ 1,691.64
	Prepaid Insurance	$ 1,691.64
	Misc. Supplies	$ 136.39
	Total Current Assets:		$ 104,677.06		Total Current Liabilities:		$ 23,497.90
					Long Term Liabilities:
	Long Term/Fixed Assets:				Notes Payable	$ 20,000.00
	Baking Equipment	$ 15,000.00			Total Long Term Liabilities:		$ 20,000.00
	Accumulated Depreciation	$ (2,142.86)
	Net Fixed Assets:		$ 12,857.14		Total Liabilities:		$ 43,497.90
					Common Stock	$ - 0
					Retained Earnings	$ 74,036.30
					Total Equity:		$ 74,036.30
	Total Assets:		$ 117,534.20		Total Liabilities & Equity:		$ 117,534.20