Peyton Approved Case Study

Peyton Approved is a dog treat homemade bakery business. Our company in little over 3 months that have been in business have saw an impressive and outstanding growth and we believe that this line of credit can help us growth our business. Here at Peyton Approved has a total of sales in the first 3 months of $ 60,063.40 and had a net income of $ 32,184.07. In the memo, we will discuss the accounting system of our company and demonstrate the process, result and strategies of our company which is been utilized to achieve it success.
Overview of the Company’s Accounting System
At Peyton Approved the accounting method used the accrual basic of accounting. By using this accounting method, the company revenue is reported on the income statement when the cash is received. The accrual accounting method also provide a better view of the company financial health.

By doing so it ensures that the business is successful and keep track of every sales, revenue and expenses that has been made in the company. Going over the workbook it provides evidence on how the company track every transaction in the journal entry, it record sales, money owed and each transaction is record at the period in which it occur.
Results of Operations and Strengths and Weaknesses of the Company The operation result for Peyton Approved can be found in the financial Statement. Those result can demonstrate how the company is operating and provide evidence of the net income of Peyton Approved. In the income statement can be show the sales revenue of the company to be of $ 60,221.40. In order to obtain current ratio, we divide current assets by current liabilities (62,022.40/7,630.00= 8.13). Our company believe that one of the biggest strength is the demand of hypoallergic items. The weakness of Peyton Approved is that the profit margin is 99.73%.
Analysis and