Running Head: ACC 308 f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f 1
ACC 308 Final Project: Notes to Financial Statements
ACC308
SNHU
April 3,2022
ACC 308 f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f 2
Depreciation
The straight-line method is considered to be one of the great methods to calculate the
Peyton Approved equipment’s depreciation. According to research, the straight-line method is
known as the easiest method for calculation. It is basically calculated by distributing the
depreciation equally over the asset's life, and very few errors occur as a result (Bragg, 2022).
Here, the company should use the new location with the same methods to make sure that the
management, shareholders and investors can compare the equipment depreciation evenly
across different areas. It has been found that the Peyton company’s depreciation will remain at
approximately $2143.00 as per the Pro Forma Balance Sheets and the Pro Forma Income
Statement.
Supplies
In general, a company use supply management to enhance the performance of the
organisation. This kind of management follows some processes like acquiring, identifying, and
managing resources. Here the suppliers are required in the organisation to operate everything.
With the support of supply management, a company can able to continue its operating systems
and grow at a faster pace. Basically, this management includes the purchase of services,
information, physical goods, and other important resources to enhance the performance of the
company. However, there are specific goals of supply management that help the company to
grow in their best ways. This goal includes the efficient allocation of resources, cost control, the
effective collection of information, and risk management associated with business decisions.
Moreover, supply management is considered a systematic business process that includes the
coordination of the inventory management, and pre-production logistics, with the support of
employees, budgeting, and other important information to run the business smoothly (Kenton,
2021). It has been found that Peyton company's total supplies are presently $27,986.00.
ACC 308 f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f 3
However, it is important for the Peyton company to ensure that they have a proper
understanding of the end products, raw materials and costs so that they can ensure no risk or no
errors will occur at the time of managing the supplies.
Inventory
The LIFO method is used by the Peyton company. This method is considered the last in
first out method. Based on the product, this method could not be the best method for the
company to use. The company need to give focus on the first-in, first-out method to utilise it in
some products. If looking into the merchandise inventory, the company has $229.00 inventory
presently. The company need to look at other company to learn other ways to reduce the overall
costs like manufacturing costs, inventory costs, and merchandise costs with the suppliers.
However, it will be very helpful for the company to enhance the supply forecast as well as it will
help to avoid shortages. Moreover, Peyton company need to review their inventory reports from
their original location to the new location, which can help the company to handle their inventory
effectively.
ACC 308 f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f f 4
References
Bragg, S. (2022, March 10). Straight line depreciation definition. AccountingTools. Retrieved
April 5, 2022, from https://www.accountingtools.com/articles/2017/5/15/straight-line-
depreciation
Kenton, W. (2021, October 11). Supply management: An overview. Investopedia. Retrieved
April 5, 2022, from https://www.investopedia.com/terms/s/supplymanagement.asp
