A B B D E G H M N Instructions To be completed i) Calculate the (Average Days Sales Outstanding Ratio) for 20XX(CY) & 20XX-1(PY) years and analyze any trends, are they positive, negative, or neutral changes)? USE THE TABLE BELOW TO ANSWER ii) Calculate the (Gross Profit Ratio) for 20x8 & 20x7 years and analyze any trends, (are they positive, negative, or neutral changes)? USE THE TABLE BELOW TO ANSWER ii) Use 5% as a threshold to determine if the change warrants investigation. (5% is based on historical volatility in the data, auditor judgement, and the fact this is a - (Assume all sales are credit sales.) (Assume Account Receivables for the past 5 years were as follows) 20XX (CY) 20XX-1 (PY) 20XX-3 (3yrs 20XX-2 (2yrs ago) ago) 20XX-4 (4yrs ago) 0 3 Accounts Receivable $ 51,719 $ 40,741 $ 31,000 $ 23,500 $ 17,000 27% 31% 32% 38% - (Assume Revenuess for the past 5 years were as follows) 20XX-3 (3yrs 20XX-4 (4yrs 20XX (CY) 20XX-1 (PY) 20XX-2 (2yrs ago) ago) ago) 4 Q3. Device Sale Income (Net of Sales Returns and Discounts $ 103,175$ 85,540 $ 65,500 $ 49,500 $ 36,000 32% 38% 21% $ 31% 51,833$ Cost of Good Sold 42,770 8 42,770 Gross Profit $ 51,342 $ USE THE TABLE BELOW TO ANSWER 0 A B B D E G H M N Instructions To be completed i) Calculate the (Average Days Sales Outstanding Ratio) for 20XX(CY) & 20XX-1(PY) years and analyze any trends, are they positive, negative, or neutral changes)? USE THE TABLE BELOW TO ANSWER ii) Calculate the (Gross Profit Ratio) for 20x8 & 20x7 years and analyze any trends, (are they positive, negative, or neutral changes)? USE THE TABLE BELOW TO ANSWER ii) Use 5% as a threshold to determine if the change warrants investigation. (5% is based on historical volatility in the data, auditor judgement, and the fact this is a - (Assume all sales are credit sales.) (Assume Account Receivables for the past 5 years were as follows) 20XX (CY) 20XX-1 (PY) 20XX-3 (3yrs 20XX-2 (2yrs ago) ago) 20XX-4 (4yrs ago) 0 3 Accounts Receivable $ 51,719 $ 40,741 $ 31,000 $ 23,500 $ 17,000 27% 31% 32% 38% - (Assume Revenuess for the past 5 years were as follows) 20XX-3 (3yrs 20XX-4 (4yrs 20XX (CY) 20XX-1 (PY) 20XX-2 (2yrs ago) ago) ago) 4 Q3. Device Sale Income (Net of Sales Returns and Discounts $ 103,175$ 85,540 $ 65,500 $ 49,500 $ 36,000 32% 38% 21% $ 31% 51,833$ Cost of Good Sold 42,770 8 42,770 Gross Profit $ 51,342 $ USE THE TABLE BELOW TO ANSWER 0