My name is Elizabeth Moss and I own Peyton Approved. Peyton Approved is an all-natural hypoallergenic dog treat business that supplies animals who have severe allergies and cannot eat regular dog treats, with another option. My sales from this business have steadily increased in the last year and Peyton Approved is ready to expand to a dog treat bakery shop. However, in order to do so Peyton Approved needs additional funding to make this dream a reality.
Overview of the Company’s Accounting System At Peyton Approved, we use the manual system where transactions recorded using ledgers are transferred to journals. Peyton Approved uses manual inventory accounting that helps keep track of inventory with bar codes. Each inventory item is tracked …show more content…
It is split up this way so that the owner can focus on the receiving and depositing of cash as well as recording cash payments to receivable records. It helps when duties are split up in accounting practices so it can ensure no receipts have been lost or stolen, concealed errors or irregularities are not left unchecked. It holds everyone accountable for their responsibilities in the ledgers or statements and making sure it is accurate at all times. Peyton approved also performs monthly reconciliations of bank statements and cash receipts therefore providing a good checks and balance …show more content…
First is the operating income which is our gross profit minus overhead expenses. At Peyton Approved our gross profit exceeds the overhead expenses at this time however some areas need improved upon. The areas of buying supplies could be cut back on if Peyton Approved could stick to one or two vendors for the all-natural ingredients. Peyton Approved is doing well at keeping costs to a minimum and operating with one employee other than the owner keeping payroll costs down. In the future more employee’s will need to be added if business keeps improving but only if the is still a net profit every period. The financial statements finished each period indicate that as a whole Peyton Approved is on the up and up. However, expenses will increase with the expansion and profits will need to increase also to keep Peyton Approved afloat. Peyton Approved plans on increasing profits by increasing advertisement and keeping employees hired to a minimum. Peyton Approved ratio analysis has solid numbers in the key ratios field such as return on equity, current ratio and debt equity ratio (Mattison, 2014). The numbers in all three of those ratios yield right in line with a business who is performing at a profit
Overview of the Company’s Accounting System At Peyton Approved, we use the manual system where transactions recorded using ledgers are transferred to journals. Peyton Approved uses manual inventory accounting that helps keep track of inventory with bar codes. Each inventory item is tracked …show more content…
It is split up this way so that the owner can focus on the receiving and depositing of cash as well as recording cash payments to receivable records. It helps when duties are split up in accounting practices so it can ensure no receipts have been lost or stolen, concealed errors or irregularities are not left unchecked. It holds everyone accountable for their responsibilities in the ledgers or statements and making sure it is accurate at all times. Peyton approved also performs monthly reconciliations of bank statements and cash receipts therefore providing a good checks and balance …show more content…
First is the operating income which is our gross profit minus overhead expenses. At Peyton Approved our gross profit exceeds the overhead expenses at this time however some areas need improved upon. The areas of buying supplies could be cut back on if Peyton Approved could stick to one or two vendors for the all-natural ingredients. Peyton Approved is doing well at keeping costs to a minimum and operating with one employee other than the owner keeping payroll costs down. In the future more employee’s will need to be added if business keeps improving but only if the is still a net profit every period. The financial statements finished each period indicate that as a whole Peyton Approved is on the up and up. However, expenses will increase with the expansion and profits will need to increase also to keep Peyton Approved afloat. Peyton Approved plans on increasing profits by increasing advertisement and keeping employees hired to a minimum. Peyton Approved ratio analysis has solid numbers in the key ratios field such as return on equity, current ratio and debt equity ratio (Mattison, 2014). The numbers in all three of those ratios yield right in line with a business who is performing at a profit