How do you figure out the materiality % for boxes in yellow?

AutoSave CH 11c Ch3_Mini_case_Materiality (1) - Scarch Burns, koph B File Home Insert Page Layout Formulas Data Review View Help Share Comments X Out 200 AutoSum - Arial - A A 10 == PRE 99 Wrap Text General 27 Fah) Pesto la copy BIU-- OA, Insert Delete Format Mergn & Center $ -% -% Olcar Paste Format Painter Clipboard Conditional Formalas Cell Formatting Table Styles Styles Sort & Find & Filter Select Ecrting Analyze Data Font Alignment Number Colls Analysis L7 X f A B D E F G H 1 K M N 0 6 71 8 Tolerable Misstatement Explanation 9 10 11 Account Name Cash and cash ecuvalents Receivables, no Inventory 2018 $48,978 $12,875 $122,337 2019 Unaudited Trial Balance $79,359 $8,643 $147,693 Tolerable Misstatement as % of Planning Account Materiality Balance 0% 05 0% 0% 75 2% $2,388 12 13 Large and complex account with mistatements expected, costly to evalt Prepaid expenses Deferred income tax boncfls $17.772 $7,132 $15,647 $10.338 0% 75% 32330 0% 2396 Rolatiwly complex estimation involved, rolofod to Deferred Income Taxos Relatively little change from pror year, not afficult to awalt $1.578 $1,578 $ Relatively little volums, not difficult to audit via 3rd party info 14 15 16 17 18 19 20 21 22 23 24 25 20 27 20 29 30 31 32 Property Plant & Equipment $203,426 Accumuiated depreciation and amortization $85,988 Intangiblus, not 3423 Lines of credit $11,011 Accounts payable & Reserve for returns $68,399 Mocrued liabilties & Accrued profit sharing $28.270 Income taxas payable & Deferred income taxes $18,057 Common stock, 26,121 shares issued $261 Lonated capital $5,460 Mditional pod in capis $20,740 Deferred compensation ($79) Accumu ated other comprehensive income $3,883 Retained earnings $317,907 Treasury slock, 3,543 and 6.706 shares al al respectively ($149,950) Total Amount of Tolerable Misstatement Allocated To Balance Sheet Accounts Planning Materiality (from work paper 3-7) Ratio of Total Tolerable Misstatement to Planning Materiality $223,736 $97,722 $1,734 $10,510 $60,286 $33.600 $24.567 $261 $6,460 $26,719 ($36) $2,173 $361,402 ($134,512) 50% 1% 0% 0% 0'S 50% 15% 0% 0% 0% 0% 098 2% 25% 43% 25% 50% 3% 0% 0% 17% 25% Not Applicable Not Applicable 50% 1% $55 $1,365 31576 30 $513 Nor Applicable 31,570 $13,023 $3,157 4.1 No change from prior year, seally verified No change from pritor year, easily verted Little change from prior year, nalicul to act Nof difficult to audit, examinis current yearvesting activity Involves some complex sppications of CAAP Not Applicable Liile cage from prior your noticulo ... Work Paper 3-7 Work Paper 3-8 Balance Sheel Incurme Statemenil Cash Flows Shareholders Investment Five Y. Ready U + 100% Type here to search O 82F Clear 8:55 PM B/29/2021