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I am having trouble with the first part mainly creating the workbook for 2018. I have attached the 2017 workbook for the Balance Sheet and Income Statement. I am having trouble trying to balance my balance sheet and could use some help on that as well as the income statement.

INSTRUCTIONS FOR MILESTONE TWO (Due in Module Five)
Note: Make sure to completely review the Milestone Two Guidelines and Rubric document.
Use the data from Milestone One and this milestone to complete your final project, due in Module Seven.
ITEMS TO COMPLETE FOR MILESTONE TWO:
The tabs to complete are linked below and colored green for convenience.
GENERAL
Use information from Milestone One and the plan to open a new location for your statements. Peyton Approved's pro forma information is provided below.
1. PRO FORMA FINANCIAL STATEMENTS
Note: Pro forma statements are "what if" statements. If the company opens the second location, what will the budgeted income statement and budgeted balance sheets be?
Using the preliminary statements as a base, prepare the following pro forma financial statements for the proposed new location. Pro forma statements in this case are budgeted statements for 2018 based on the new location scenario at the bottom of the page.
	Pro Forma Income Statement
	Pro Forma 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 long-term note. Use straight line depreciation assuming a seven-year life, no residual value. Use full year's depreciation for the first year. Equipment purchase was financed with a long-term 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
2. NOTES TO THE FINANCIAL STATEMENTS
Note: This part of the project is submitted as a separate Word document. Refer to the Milestone Two Guidelines and Rubric document for submission guidelines. You will find an example for how to format these notes located in the Module Five resources.
Your notes must contain the following:
A. Create appropriate notes as year-to-year documentation for managing depreciation, supplies, and inventory.
B. Create appropriate notes for long-term debt.
Peyton Approved uses the following accounting practices: Inventory: Periodic, LIFO for both baking and merchandise Equipment: Straight line method used for equipment

				Peyton Approved
				Income Statement
				for Year Ended 12/31/2017
	Bakery Sales	327,322.55
	Merchandise Sales	1205.64
	Total Revenues		328,528.19
	COGS - Baked	105,834.29
	COGS - Merchandise	859.77
	Total COGS		-106,694.06
	Gross Profit			221,834.13
	Expenses
	Rent Expense	24549.19
	Wages Expense	10670.72
	Miscellaneous Supplies Expense	3000.46
	Business License Expense	2045.77
	Miscellaneous Expense	1363.84
	Depreciation Expense	677.86
	Insurance Expense	1091.08
	Advertising Expense	1549.74
	Interest Expense	818.31
	Telephone Expense	490.98
	Gain/loss on disposal of equipment	100
	Total Operating Expenses			-46357.95
	Net Income				175,476.18

				Peyton Approved
				Balance Sheet
				As of December 31, 2017
Assets
Current Assets								Liabilities and Owner's Equity
	Cash	68,520.04						Current Liabilities
	Accounts Receivable	68,519.91						Accounts Payable	23,437.11
	Other Recievables insurance	700.00						Wages Payable	3,383.28
	Baking Supplies	18,681.70						Interest Payable	211.46
	Merchandise Inventory	1,038.07						Customer Deposit	1,000
	Consignment Inventory	200.00
	Prepaid Rent	2,114.55						Total Current Liabilities		28,031.85
	Prepaid Insurance	2,114.55
	Misc Supplies	170.49						Long Term Liabilities
	Total Current Assets	162,059.31	162,059.31					Notes Payable	5,000
								Total Long term Liabilities		5,000.00
	Long Term Fixed Assets:
	Baking Equipment	12,000.00						Total Liabilities			33,031.85
	Accumulated Depreciation	(406.44)
	Net Fixed Assets		11,593.56					Common Stock	20,000
								Retained Earnings	120,621.02
	Total Assets		173,652.87
								Total Equity			140,621.00
								Total Liabilities and Equity			173,652.87

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