Answered You can hire a professional tutor to get the answer.
Peyton Approved Financial Data: Preliminary Financial Statements have already been prepared (2017 statements in the Final Project Workbook). Final...
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 company's 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.
