Common-size income statement examination. Which items on this common-size income statement may have material misstatements. What might the individual estimated dollar amounts of those material misstatements be? Thanks
Potemtial Accounts, Returns and Allowances 2016, License and Cert Fees 2016, Security 2016, Property Taxes 2016, Bad Debts 2016, Depreciation Exp. 2016, Business Publications 2014, Utitities 2016, Pension Expense 2015, Misc. 2016?
Pinnacle Manufacturing Company Common-Size Income Statement Machine-Tech Division For the Year Ended December 31 2015 2014 2016 000) of of (000) of Preliminary Net Sales Audited Net Sales Audited Net Sales Sales 5,727,487 00.17% 6,253,363 00.24% 6,093,878 100.24% Less: Returns and Allowances 9.605 0.17% 4,770 0.24% 4.382 0.24% Net Sales 6,238,593 00.00% 6,079,496 100.00% 5,717,882 00.00% Cost of Sales. 902,694 33.28% 2,193,103 35.15% 2,105,027 34.63% Gross Profit 3.815 66.72% 4.045.490 64.85% 3,974,469 65.37% OPERATING EXPENSES-Allocated Salaries-Management 91.476 01,595 .63% 97.64 1.51% Salaries-Office 2,638 0.22% 2.624 0.20% 3.057 0.21% licensing and certification fees 3,396 0.55% 29,937 0.48% 28,100 0,46% Security 22,086 0.39 27,128 0,43% 26,820 0.44% 4,618 3.742 0,07% 4,420 0.07% Medical benelius 795 0.01% 0.02% 022 0,02% Advertising 6, S17 0.11% 7,573 0.12% 048 0.12% Business publications 902 0.03% 2.032 0.03% 0.00% Property taxes 0.03% 7,573 0.12% 7.475 0.12% Bad debt 33,32 0.58% 44.759 0.72% 42,942 0,71% 3.17% 85.850 Depreciation expense 240.767 4.21% 97,527 3.06% Accounting fees 0,756 0.19% 2,89 0.21% 2.98 0.21% Total operating expenses-Allocaled 456.844 7.99% 449.103 7.20% 427,840 7.04% OPERATING EXPENSES-Direct alaries-Sales 98.978 3.48% 230,922 3.70% 224,543 3.699% Wages Rental 9.54% 575,724 491,794 8.60% 595,389 9.47% Wages-Mechanics 3.539 1,333,4 9.47% ,339.627 21.47% 21.9396 Wages-Warehouse 227,196 3.64% 232,853 88.339 3.29% 3.83% Garbage collection 27,649 0.48% 2977 0.48% 37,970 0.62% Payroll benefits 39,832 2.45% 24,984 2.00% 23,136 2.03%, Rent- Warehouse 28.126 0.51% 31,306 0,49% 31,554 0,51% Telephone 0.03% 3,280 77 2,560 0.04% 0,05% Utilities, 0.25% 357 0.18% ,670 0.19% Postage 4,708 0.08% 0.09% 6,445 0.11%. Linen service 579 0.0 350 0.01% 457 0.01% Repairs and maintenance 9,414 0.16% 48A 0.18% 2,153 0.20%. Cleaning service 3,253 0.06% 3.472. 3,322 0.06% 0.05%, service 3,255 ,327 0.20% 0.21% 0,590 0.1796 4,608 0.26% 4.522. 0.23% 897 0.20% Travel and entertainment 4.928 0.09% 4,420 0.07% 4,277 0.07% Pension expense 6,368 5,95 0.11% 0.18% 0.10% Office supplies 7.28 6,012 0.11% 6,312 0.10% 0.12% Miscellaneous 8,14 0.14% 5,035 0.08% 6,856 0.11% Total operating expenses Direct 2.273.78 39.77% 2,669.019 42.78% 2.613.122 43.48% Total operating expenses 3,070,962 50.51% OPERATING INCOME 1,084,563
