Johnson Clock Company sells specialty clocks, watches, and other timekeeping devices. Since its inception, the company has sold items through its home office store and at

Industry and collector trade shows around the country. To meet the demand from collectors around the world, the company began selling items through its website. Recent financial information about Johnson€™s sales is summarized in the tables on the next page.
REQUIRED
Using the information given, design and perform analytical procedures for the sales and collection cycle at Johnson Clock Company. On the basis of the results of your analytical procedures, describe how the results related to the internet- based sales differ from the home office and trade show sales.

Transcribed Image Text:

Year Ended Year Ended Year Ended 12/31/12 12/31/11 12/31/10 Sales: Trade show Internet-based Home office $1,279,480 $1,218,552 $1,163,851 704,391 52,884 773,265 739,259 122,462 147,772 Sales Returns: Home office Trade show Internet-based $25,589 23,152 25,605 12,679 4,760 13,946 13,254 13,676 11,022 Year Ended Year Ended Year Ended 12/31/12 12/31/11 12/31/10 Cost of Goods Sold: Home office Trade show Internet-based $831,662 $816,429 $768,142 491,023 480,518 454,332 81,275 66,129 28,822 Receivables related to sales from: $126,195 $123,524 $127,545 74,149 68,862 67,544 3,239 Home office Trade show Internet-based 3,020 1,159 Tolerable misstatement for sales and receivables is $12,000