Drop Box 2.3 Read Case Study 9-39 on page 294 in the textbook, Auditing and Assurance Services: An Integrated Approach. Complete the tasks in parts a-d on page 294. a. Play the role of Pamela Albright in the 12-31-16 audit of Stanton Enterprises. Make a preliminary judgement of materiality and determine performance materiality for the financial statement accounts. Prepare an audit schedule showing your calculations. Income before taxes: $8,004,277 Adjustment for increase in AR: -$60,721 Adjustment for AP to reflect increase cost of goods sold: -$1,177,854 Total Adjustments: -$1,238,574 Adjusted IBT: $6,765,703 Materiality: $338,285 (5%) 12/31/2016 Performance Materiality Cash $243,689 $10,000 Trade AR $3,544,009 $75,000 Uncollectable accounts -$120,000 $15,000 Inventory $4,520,902 $100,000 Prepaid expenses $29,500 $5,000 total current assets $8,218,100 Property, Plant and equip @ cost $12,945,255 $100,000 depreciation -$4,382,990 $50,000 Totoal PP&E $8,562,265 Goodwill $1,200,000 $27,500 Total Assets $17,980,365 AP $2,141,552 $60,000 Bank Loan Payable $150,000 $0 Accrued Liabilities $723,600 $20,000 Fed. Income taxes $1,200,000 $45,000 long term debt $960,000 Common Stock $1,250,000 additional paid in capital $2,469,921 $8 845 297