Question
Analyze and draw conclusions about the nature and extent of tests of controls. Analyze and draw conclusions about the nature, timing, and extent of substantive
Analyze and draw conclusions about the nature and extent of tests of controls.
Analyze and draw conclusions about the nature, timing, and extent of substantive procedures.
Cloud 9 Consolidated Statement of Income | ||||
For the year ended January 31, 2022 | For the year ended January 31, 2021 | |||
Revenues | $364,953,846 | $345,965,385 | ||
Costs and expenses: | ||||
Cost of sales | $222,496,154 | $207,838,462 | ||
Selling and administrative | 104,450,000 | 100,246,154 | ||
Interest expense | 1,257,692 | 1,730,769 | ||
Other (income)/expense, net | 1,311,539 | 796,154 | ||
Total costs and expenses | 329,515,385 | 310,611,539 | ||
Income before income taxes | 35,438,461 | 35,353,846 | ||
Income taxes | 12,757,692 | 13,080,769 | ||
Net income | $ 22,680,769 | $ 22,273,077 |
Cloud 9 Consolidated Balance Sheet | ||||
January 31, 2022 | January 31, 2021 | |||
Assets | ||||
Current assets: | ||||
Cash and cash equivalents | $11,692,308 | $9,780,769 | ||
Accounts receivable, less allowance for doubtful accounts of $2,773,077 and $2,515,385 | 62,361,538 | 60,361,539 | ||
Inventory | 54,773,077 | 55,615,385 | ||
Investments (derivatives) | 14,460,577 | 14,852,885 | ||
Deferred income taxes | 3,357,692 | 3,288,461 | ||
Prepaid expenses and other current assets | 5,250,000 | 7,276,923 | ||
Total current assets | $151,895,192 | $151,175,962 | ||
Property, plant, and equipment, net | 62,261,539 | 60,900,000 | ||
Identifiable intangible assets and goodwill, net | 3,820,192 | 3,950,961 | ||
Deferred income taxes and other assets | 5,853,846 | 9,238,462 | ||
Total assets | $223,830,769 | $225,265,385 | ||
Liabilities and Stockholders' Equity | ||||
Current liabilties: | ||||
Current portion of long-term debt | $207,692 | $1,926,923 | ||
Notes payable | 28,896,154 | 35,546,154 | ||
Accounts payable | 20,615,385 | 20,915,385 | ||
Accrued liabilities | 18,157,692 | 23,336,581 | ||
Income taxes payable | 842,308 | 582,650 | ||
Total current liabilities | $ 68,719,231 | $ 82,307,693 | ||
Long-term debt | 16,765,384 | 18,088,462 | ||
Deferred income taxes and other liabilities | 3,942,308 | 4,253,846 | ||
Stockholders' equity: | ||||
Common stock at par value | 107,692 | 107,692 | ||
Capital in excess of par value | 17,669,231 | 14,192,308 | ||
Unearned stock compensation | (380,769) | (450,000) | ||
Accumulated other comprehensive income | (5,850,000) | (4,273,077) | ||
Retaining earnings | 122,857,692 | 111,038,461 | ||
Total stockholders' equity | 134,403,846 | 120,615,384 | ||
Total liabilties and stockholders' equity | $223,830,769 | $225,265,385 |
Cloud 9 Condensed Cash Flow Statement | ||
For the year ended | ||
January 31, 2022 | January 31, 2021 | |
Cash provided by operations | $25,250,000 | $26,907,692 |
Cash used by investing activities | (13,165,385) | (16,923,077) |
Cash used by financing activities * | (13,457,692) | (9,696,154) |
Effect of exchange rate changes on cash | 3,284,616 | 1,873,077 |
Net increase in cash and cash equivalents | 1,911,539 | 2,161,538 |
Cash and cash equivalents, beginning of year | 9,780,769 | 7,619,231 |
Cash and cash equivalents, end of year | $11,692,308 | $9,780,769 |
*Includes dividends paid of $4,988,462 in 2022 and $5,119,231 in 2021.
Cloud 9 Trial Balance | ||||
October 31, 2022 | October 31, 2021 | |||
Debit | Credit | Debit | Credit | |
Cash and cash equivalents | $13,446,154 | $6,123,884 | ||
Accounts receivable | 70,485,625 | 64,867,910 | ||
Allowance for doubtful accounts | $704,856 | $648,679 | ||
Inventory | 55,100,000 | 57,900,000 | ||
Investments (derivatives) | 13,419,231 | 13,805,769 | ||
Deferred income taxes (current) | 2,857,692 | 3,584,615 | ||
Prepaid expenses and other current assets | 9,265,385 | 6,446,154 | ||
Property, plant, and equipment | 103,803,846 | 97,576,923 | ||
Accumulated depreciation | 39,761,538 | 35,207,692 | ||
Identifiable intangible assets and goodwill | 3,723,007 | 3,851,923 | ||
Accumulated amortization | ||||
Deferred income taxes and other assets (noncurrent) | 9,557,692 | 8,410,849 | ||
Current portion of long-term debt | 2,115,385 | 300,125 | ||
Notes payable | 21,376,923 | 34,823,077 | ||
Accounts payable | 14,986,457 | 22,561,538 | ||
Accured liabilities | 25,803,846 | 24,150,000 | ||
Income taxes payable | 2,211,539 | 3,726,923 | ||
Long-term debt | 23,661,538 | 17,119,106 | ||
Deferred income taxes and other liabilities (noncurrent) | 4,915,384 | 4,330,769 | ||
Common stock at par value | 111,538 | 107,692 | ||
Capital stock in excess of par value | 19,415,385 | 16,484,615 | ||
Unearned stock compensation | 253,846 | 480,769 | ||
Accumulated other comprehensive income | 5,011,538 | 4,746,154 | ||
Beginning retained earnings | 122,857,692 | 98,150,473 | ||
Dividends | 3,866,838 | 3,299,423 | ||
Repurchases of common stock | 4,627,381 | 2,939,393 | ||
Revenue | 277,338,461 | 269,442,308 | ||
Cost of sales | 169,346,154 | 163,003,846 | ||
Selling and administrative | 79,092,308 | 78,246,154 | ||
Interest expense | 1,438,461 | 1,773,077 | ||
Other expense | 453,846 | 757,692 | ||
Income tax expense | 9,511,538 | 9,238,462 | ||
Totals | $555,260,542 | $555,260,542 | $527,052,997 | $527,052,997 |
This is all of the available information.
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