has not bothered to audit the office's records/cash for several years. The external auditors have also never visited the office. 1) The following information is available for Sheldon Leonard Company: Operating expenses $ 85,000 Cost of goods sold 200.000 Sales 368,000 Sales returns and allowances 16,000 Instructions: Compute each of the following: (a) Net sales (6) (c) Gross margin Income from operations (d) Gross profit margin ratio 2) Using the following, prepare a bank reconciliation for Samtani Co. for August 31, 2019: a) The bank statement balance is $4,010 b) The cash account balance is $4,207 c) Outstanding checks amounted to $517 d) Deposits in transit are $633 e) The bank service charge is $45 f) A check for $84 for supplies was recorded as $48 in the ledger an error in recording) 3) Please identify four (4) weaknesses in the following scenario (there are more than 4!): An agent for a large insurance company has a small office in a rural town. There are only two employees in the office: the agent and his secretary. The agent spends all of his time in meeting with customers and selling insurance products to them. The secretary processes all of the paperwork connected with the insurance policies, including processing the collection of premiums and the paying out of claims. The agent feels that he is a "big man" and that his time is very valuable, and that he should not bother himself with clerical work," so he does not supervise the secretary's work, nor does he look at the accounting records, cash documents or bank statements. Besides, he trusts the secretary as she is very hard-working; in fact, she has never missed a day of work in five years and does not even take her annual leave. The agent works for a large insurance company. However, because the number of policies and customers handled by the office is relatively small, the insurance company's internal audit office