1. Go to the Pinnacle link on the textbook Web site (www.pearsonhighered.com/arens) and open the Pinnacle income statement, which is located in the Pinnacle Income Statement worksheet of the Pinnacle_Financials Excel file. Use the income statement information to prepare a common-size income statement for all three years. See Figure 8-4 for an example. Use the information to identify accounts for which you believe there is a concern about material misstatements. Use a format similar to the following:

   Account Balance	Estimate of $ Amount of Potential Misstatement

   Figure 8-9

   Pinnacle Manufacturing Financial Statements