Description Year 5 ($) Unaudited The following information was taken from the accounting records for Aurora manufacturing Inc. Year 4 (S) Audited Year 3 ($) Audited Year 2 ($) Audited Year 1 ($) Audited Account Receivable Gross 535,000 295,000 265,000 207,500 175,000 Allowance for Uncoll. Acc. (14,150) (6,400) (5,275) (55,900) (5,400) Total Asset 2,200,000 1,800,000 1,500,000 1,200,000 1,000,000 Total Revenue 2,700,000 2,050,000 1,750,000 1,400,000 1,200,000 Uncoll. Account Expense 33,750 25,625 21,875 17,500 15,000 Write off of A/R. 26,000 24,500 22,500 17,000 14,000 Industry Median: Sales to Total Assets 1,25 1.23 1.29 1,26 A/R Collection Period 47 48 47 47 Uncoll. Account Expense 1.50% 1.30% 1.25% 1.25% to Net Credit Sales Required: a. Calculate the following ratios for year 2,3,4, and 5: Sales to Total Assets. A/R growth to sales growth. A/R collection period. Uncollectible Account Expense to Net Credit Sales. Uncollectible Account Expense to Bad Debt write offs. b. Describe the implications of the resulting ratios fort auditor's audit strategy for year 5. What specific audit objectives are likely to be in is stated?. How should the auditor respond in the potential audit test?.