2 project

Buffet CPA is auditing DeeDee Manufacturing. As the staff on the engagement, you have retrieved the following information from DeeDee's accounting records. The next step in your audit program asks you to calculate the amounts needed in the below shaded cells. a. Calculate and enter in the above shaded cells the following information for years 2,3,4, and 5 : Purchases, Accounts payable turnover in days, Cost of goods sold to average accounts payable, and current ratio. b. Describe below in several sentences the implications of the resulting ratios for the risks in year 5 . Buffet CPA is auditing DeeDee Manufacturing. As the staff on the engagement, you have retrieved the following information from DeeDee's accounting records. The next step in your audit program asks you to calculate the amounts needed in the below shaded cells. a. Calculate and enter in the above shaded cells the following information for years 2,3,4, and 5 : Purchases, Accounts payable turnover in days, Cost of goods sold to average accounts payable, and current ratio. b. Describe below in several sentences the implications of the resulting ratios for the risks in year 5