Peyton Approved Bakery Case Study

ACC 201 Final Project Part II Bank Memo
Latonya Parrish
Southern New Hampshire University

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Peyton Approved Bakery is a popular bakery shop located in Haboken, 95 Washington Street, New Jersey. The company is known for its delicious cakes, pastries and deserts. Peyton Approved is a family owned venture opened in July 2014. Our sales target every individual with close proximity to 95 Washington Street. The shop runs a combination activities involving sale of bakery products and merchandise. Peyton gained gross sales of $ 60221 from bakery and merchandise sales.
The company has experienced consistent growth since it was established in July 2014. Peyton Approved’s short term objective is to expand its operation

The company uses accrual method whereby expenses and income are recorded when they are earned or incurred.
The company’s accounts are organized into charts of accounts. The charts of accounts are divided into Assets, Liabilities, Equity, Revenue and Expense. Moreover, we use double-entry system to record transactions into their respective accounts. Since debits equal credits, double-entry accounting prevents common bookkeeping errors. Errors that do occur are easier to find.
Results of Operations and Strengths and Weaknesses of the Company
Peyton Approved collected total revenue of $60221for the period ended 30 September 2014 and a gross profit of $60063.40 making a profit margin of 99%. The company’s net income for the same period was $32 184.07 which translates to a net profit margin of 53%. These percentages show that a bakery business is highly lucrative and expansion would lead to more income. This situation is attributable to cheaper cost of production and other administration expense and good pricing. The company’s weakness is that it is running a single store with few employees hence is not able to maximize its