California Crunch Company
Statements of Income
For the year ended December 31,						2018	2017
Net Sales (less returns & allowances)						$ 8,353,542	$ 7,998,832		4%
Cost of Goods Sold						3,745,623	3,621,532		3%
Gross Margin						4,607,919	4,377,300		5%
Operating Expenses:
Advertising						115,325	113,452		2%
Bad Debt Expense						65,232	62,585		4%
Depreciation and Amortization						75,210	73,565		2%
Dues & Subscriptions						600	575		4%
Insurance						60,800	60,600		0%
Licenses & Fees						300	285		5%
Marketing & Promotion						52,632	51,025		3%
Meals and Entertainment						25,030	24,345		3%
Office Expenses						14,325	14,652		-2%
Office Supplies						24,003	23,458		2%
Salaries & Wages						2,380,105	2,192,032		9%
Professional Fees						39,700	38,500		3%
Property Taxes						19,220	19,000		1%
Rent						85,230	84,360		1%
Repairs & Maintenance						1,450	1,500		-3%
Shipping Delivery						770	730		5%
Travel Expenses						75,830	73,560		3%
Utilities						35,230	34,250		3%
Leased Equipment						44,000	43,750		1%
Other						15,320	14,756		4%
Total Operating Expenses						3,130,312	2,926,980		7%
Operating Income						1,477,607	1,450,320		2%
Interest Expense						84,658	83,950		1%
Other Income (interest, royalties)						5,920	5,725		3%
Income Before Taxes						1,398,869	1,372,095		2%
Income Taxes						489,604	480,233		2%
Net Income						$ 909,265	$ 891,862		2%

Part 2:

The owner of a small snack food and potato chip manufacturer, California Crunch Company, has asked you to investigate a possible issue with the company's payroll. They have provided you with this year and last year's income statements and two payroll files. The HR Master file gives you important information about each employee. The Payroll file detailsthe companys payroll for the last 5 pay periods of the year. You will be conducting some audit procedures for California Crunch and analyzing the results.

Course objectives covered: 2-5

PROJECT REQUIREMENTS:

This project is split into four (4) parts with one (1) part due each week of the course. Based on your readings, use of technology, research of literature, and other sources do the following:

Part 2: Using the financial statement file and the two data files for payroll, perform some analytical tests.

• You will need to perform some analytical test on the financial statements using Excel. This may be a horizontal and/or vertical analysis, ratios, etc.
• You will then need to perform some analytical tests on payroll files using IDEA that you think may be necessary. Remember there are tutorial videos on the IDEA website to assist you. Write a 1-2 sentence explanation for each analysis you are performing and printscreen your results along with the history log when you have completed the analysis in IDEA to turn in this week.

WRITING REQUIREMENTS:

• The report should be should be 4-5 pages in total for the entire project (not including cover page, abstract, or references)
• Include the Excel and IDEA screenshot(s) or files as exhibits in your paper
• Include a minimum of 2 scholarly sources from the KU Library and the AICPA
• All sources used are to be cited in APA format
• Please use the writing center if needed

TECHNOLOGY/COLLABORATIVE ACTIVITY:

• You will be using Excel and IDEA to perform some analysis and results will be included as an exhibit to your paper
• You will be presenting your findings from the project to the class using the voice-over feature in PowerPoint or YouTube. Please be sure the audio is clear, and the file or link is accessible in the Week 4 Presentation discussion board.
• You will be collaborating with other classmates on their presentations and answering any questions about your own presentation.