AP11.2 (LO 2) Analytical procedures The following data was taken from the production and accounting records for Casuccio Manufacturing, Inc.

		Unaudited 2023		Audited 2022		Audited 2021
Operating Data
Capacity in units		450,000		450,000		450,000
Production in units		450,000		400,000		300,000
Inventory in units		32,000		28,000		21,000
Financial Data ($000)
Total revenues		$35,200		$27,500		$21,200
Total assets		$23,000		$19,500		$15,700
Accounts receivable, net		$5,900		$4,300		$3,900
Bad debt expense		$175		$135		$105
Accounts receivable written off		$165		$125		$100

Required

1. Calculate the following ratios for 2023, 2022, and 2021:

1. Sales to total assets.

2. Sales to production.

3. Revenue per unit sold.

4. Accounts receivable growth to sales growth.

5. Uncollectible accounts expense to net credit sales.

6. Uncollectible accounts expense to accounts receivable written off.

7. Accounts receivable turnover in days.

1. Describe the implications of the resulting ratios for the auditor's audit strategy for the year 2023.

2. What specific assertions are likely to be misstated?

3. How should the auditor respond in terms of potential audit tests?