2. Write a memo (labeled GA-4) highlighting what you believe are potential problem areas. In other words, are there any significant changes from year-to-year that we might need to investigate further, or does anything jump out at you? Include printouts of your calculations from 1. above as support and label them GA-4-1, GA-4-2, etc. (You're using GA-4 because other auditors have included other documents in the working paper file already - GA-1, -2, and -3.) (15 points) Oxford Manufacturing, Inc. Pre dosing Trial Balance (Audited) December 31, 2018 Credit Debit $ 1.987.28 198, 116.52 3.044.958.13 16,410,902.71 $ 1.262.819.88 3.012,000.00 18,825,205.24 743,314.38 200,000.00 7.406.62 117,000.00 623.905.92 433.217.10 163,500.00 572.691.08 53.840.59 4.633,118.09 0.00 29.470.32 1.318.69 583.99 6.033.01 2.815.47 1.318.69 583.99 10,000,000.00 Account ID Account Description 10100 Cash on Hand 10200 Regular Checking Account 10300 Payroll Checking Account 10400 Savings Account 11000 Accounts Receivable 11500 Allowance for Doubtful Accounts 12000 Inventory 12300 Reserve for Inventory Obsolescence 14100 Prepaid Insurance 14200 Prepaid Rent 14300 Office Supplies 14400 Notes Receivable-Current 14700 Other Current Assets 15000 Land 15100 Buildings and Land improvements 15200 Machinery, Equipment Office Furniture 17000 Accum. Depreciation 19000 Investments 19900 Other Noncurrent Assets 20000 Accounts Payable 23100 Sales Tax Payable 23200 Wages Payable 23300 FICA Employee Withholding 23350 Medicare Withholding 23400 Federal Payroll Taxes Payable 23500 FUTA Tax Payable 23600 State Payroll Taxes Payable 23700 SUTA Tax Payable 23800 Employer FICA Payable 23900 Employer Medicare Payable 24100 Line of Credit 24200 Current Portion Long Term Debt 24300 Notes Payable-Current 24700 Other Current Liabilities 27000 Notes Payable-Noncurrent 39003 Common Stock 39004 Paid-in Capital 39006 Retained Earnings 40000 Sales 41000 Sales Returns 42000 Warranty Expense 45000 Income from Investments 48000 Interest Income 50010 Cost of Goods Sold 57500 Freight 60000 Advertising Expense 61000 Auto Expenses 62000 Research and Development 64000 Depreciation Expense 64500 Warehouse Salaries 65000 Property Tax Expense 66000 Legal and Professional Expense 67000 Bad Debt Expense 68000 Insurance Expense 70000 Maintenance Expense 70100 Utilities 70110 Phone 70120 Postal 71000 Miscellaneous Office Expense 72000 Payroll Tax Exp 73000 Pension Profit Sharing Plan Ex 74000 Rent or Lease Expense 77500 Administrative Wages Expense 78000 Interest Expense 78500 Income Tax Expense. Federal 78510 Income Tax Expense State 80000 Loss on Legal Settlement 8.105,000.00 7.423,000.00 2.219.620.65 246,172,918.44 4.497,583.20 1,100,281.48 0.00 204,302.81 141,589,221.61 4,302,961.46 897,140.01 208.974.39 31.212,334.17 133,000.00 4.633,383.62 80.495.32 3.605,133.96 1.622,425.99 853,942.65 61,138.04 135,642.99 78,373.78 128,033.21 17.023.27 1.550,989.00 3.000.000.00 2.603.485.87 16,875,305.98 875,000.00 2,365,000.00 429,000.00 19.172.000.00 $ 283.238,404.03 $ 283.238.404.03 Oxford Manufacturing, Inc. Pre-closing Trial Balance (Unaudited) December 31, 2019 Credit Debit $ 2,275.23 557,125.92 3.845,599.15 51,515.259.98 1.250,000.00 $ 1.230,000.75 67.724,527.50 848,000.00 3.424.213.78 8.540.00 117,000.00 674,313.92 2.929,097.13 609,500.00 1.998,780.39 53,840.59 1.933.095.91 8.439.65 11.414.99 107,086.12 56.108.86 8.439.65 11.414.99 44.400,000.00 Account ID 10100 10200 10300 10400 11000 1 1400 11500 12000 12300 14100 14200 14300 14400 14700 15000 15100 15200 17000 19000 19900 20000 23100 23200 23300 23350 23400 23500 23800 23700 23800 23900 24100 24200 24300 24700 27000 39003 39004 39005 40000 41000 42000 45000 48000 47000 50010 57500 60000 61000 62000 64000 64500 65000 66000 67000 68000 70000 70100 70110 70120 71000 72000 73000 74000 77500 78000 78500 78510 Account Description Cash on Hand Regular Checking Account Payroll Checking Account Savings Account Accounts Receivable Other Receivables Allowance for Doubtful Accounts Inventory Reserve for Inventory Obsolescence Prepaid Insurance Prepaid Rent Office Supplies Notes Receivable-Current Other Current Assets Land Buildings and Land Improvements Machinery, Equipment Office Fumiture Accum. Depreciation Investments Other Noncurrent Assets Accounts Payable Sales Tax Payable Wages Payable FICA Employee Withholding Medicare Withholding Federal Payroll Taxes Payable FUTA Tax Payable State Payroll Taxes Payable SUTA Tax Payable Employer FICA Payable Employer Medicare Payable Line of Credit Current Portion Long-Term Debt Notes Payable Current Other Current Liabilities Notes Payable-Noncurrent Common Stock Paid-in Capital Retained Eamings Sales - Spotlight Sales Returns Warranty Expense Income from Investments Interest Income Miscellaneous Income Cost of Goods Sold Freight Advertising Expense Auto Expenses Research and Development Depreciation Expense Warehouse Salaries Property Tax Expense Legal and Professional Expense Bad Debt Expense Insurance Expense Maintenance Expense Utilities Phone Postal Miscellaneous Office Expense Payroll Tax Exp Pension Profit Sharing Plan Ex Rent or Lease Expense Administrative Wages Expense Interest Expense Income Tax Expense. Federal Income Tax Expense State 12,000,000.00 8.105,000.00 7.423,000.00 6.590.983.64 242,713,452.88 11.100.220.89 1.158.128.47 1.426.080.31 131,881.40 2.166,000.00 130.196,645.28 4.240.263.09 1,036,854.01 210.502.80 528.870.44 448,000.00 4.720,715.56 99,332.45 4,913,224.45 36.108.92 35,502.67 137,332.18 52,599.02 77,803.61 24,891.82 1.577.811.85 3.300,000.00 1.206,574.00 16.197225.43 2,591,736.50 8.900,000.00 3.100.000,00 $ 329,788,915.21 $ 329,788,915.21