Peyton Approved Uses An Accrual Accounting System

Operations is separate from the accounting department. The employees in operations handle promoting the products. Also, Operations is in charge of making the products. The company’s accounting system is handled in-house by the cashier and the bookkeeper and by the accounting firm hired to handle the businesses’ financial reporting. The cashier handles all sales through the register. The register is balanced against the drawer each night by the bookkeeper and a deposit made the same day. The bookkeeper gives the accountant the drawer receipts and bank receipts for journal entries and later reports. The accountant checks all cash received and payments made against bank statements and collected paperwork. There is not a single person assigned to do all duties. Results of Operations and Strengths and Weaknesses of the Company If you compare bakery sales in July to bakery sales in September, it shows a 66% increase in sales in just two months. Peyton Approved uses its equity to finance the business than taking out loans. It has a .36% Debt to Equity ratio. The best ratio for the business is the profit margin. In three months the profit margin for Peyton Approved is 53.4%. The company just added a product line of hypoallergenic shampoos. It has been selling these products for one month and the company only turned the product over once during that month. At this time it does not look like adding these products to sales is