Considerations for Vacuum Bonanza Inc.

Vacuum Bonanza Inc. manufactures vacuum cleaners. It sells its vacuums to large retailers, such as Target and Wal-Mart. In 2019, Vacuum looked like it might not survive. Its sales were declining and its expenses increasing. However, at the end of 2019 (due to a leveraged buyout) new management came to the Company. Their goal was to put the bonanza back into Vacuum Bonanza. The new management had a reputation for aggressive "chainsaw" style cutting of expenses and employees.

During 2020, the new management reported to the press that they had hired new engineers, streamlined operations, and cut payroll expenses. Indeed, management told the press that it took a "chainsaw" approach to slashing payroll through layoffs.

In 2020, they introduced a new vacuum cleaner with more power. According to Consumer Reports, the new vacuum was high powered, but did not add anything fresh to the market, in terms of vacuum technology. Further, in 2020, they implemented a bonus plan for executives.

Please perform the vertical (common size) and horizonal (trend) analysis for Vacuum Bonanza. Then as a team, complete the chart below. Prioritize which six accounts you believe are most at risk of material misstatement, by listing the most serious matter as the 1^st priority. Do not list an account/assertion combination (columns 2 and 5) more than once. Provide evidence for why your team believes that the account is at risk of misstatement in the form of a ratio and explanation.

Priority	2) Account	Concern - over or under statement?	Provide ratio evidence for your concern. Also, discuss your concern in words and why the ratio points to material misstatement. Include qualitative evidence from the narrative, as appropriate.	5) Assertions most at risk of misstatement. Explain each assertion you use and why you chose it.	Related account