Brittany Petrof wishes to use classical variables sampling to evaluate the reasonableness of the book value of the accounts receivable of Littler, Inc. Littler has 10,000 receivable accounts with a total book value of $1,500,000. Petrof estimates the populations standard deviation to be equal to $25. After examining the overall audit plan, the Petrof believes that the accounts tolerable misstatement is $60,000, and that a risk of incorrect rejection of 5 percent and a risk of incorrect acceptance of 10 percent are appropriate.

Assume the following results: Sample size = 183 accounts Book value of items in sample = $149 Average audited value of items in sample = $146 Standard deviation of sample = $28 Required:

a. Use the ratio method to calculate:

(1) Projected misstatement:

(2) Estimated total audited value:

b. Use the difference estimation method to calculate:

(1) Projected misstatement:

(2) Estimated total audited value: