oli ili III 1 Normal 1 No Spac... Heading 1 Heading 2 Title Subtitle Subtle Em... Emph Paragraph (Problem 6C-4) Styles For the first task of the Audit Case Review, you will recalculate the analytical review ratios for the Keystone Computers & Networks. The working paper on page 254 shows the ratios prepared by the auditors. Use this working paper as a reference to perform the following procedures: a. Use the worksheet on page 2 to recalculate the ratios for 12/31/X5. Refer to the financial statements on pages 250-251 to calculate the ratios. Show your work on the worksheet and insert the results below: Keystone Computers & Networks, Inc. Analytical Review Ratios For the Period Ended December 31, 20X5 123 XS 12/31/X4 Industry Current Ratio 1.215 1.300 Days' Sales in Accounts Receivable, Computed with Average Accounts Receivable 33.2 37.000 Allowance for Doubtful Accounts / Accounts 1.1% Receivable Bad Debt Expense /Net Sales 0.2% Total Liabilities to Net Worth 2.7 2.900 Return on Total Assets 8.3% 9.0% Return on Net Worth 30.5% 29.0% Return on Net Sales 1.0% 2.3% Gross Profit/Net Sales 23.2% 24.0% Selling, Operating and Administrative Expense 21.4% 23.9% Times Interest Earned 4.1 5.5 b. After completing part (a), review the ratios and identify below the financial statement accounts that should be investigated because the related ratios are not comparable to prior-year ratios, industry averages, or your knowledge of the company. Inventory Turnover Computed with Average Inventory Average Inv. (Beg. Inv. + End Inv)/2 Inv. Turnover = Cost of Goods Sold / Average Inv. CGS per day Cost of Goods Sold/365 Days Inventory Computed with Average Inventory Days Inv. Average Inv. / CGS per day Worksheet Saved to US PL Table 1001S ces Mailings Review View Help Design Layout O Search 4 A 21 A. . bC 1 Normal 1 No Spac... Heading 1 Heading 2 Title Subtitle Paragraph Styles c. For each account identified in part (b), list potential reasons for the unexpected account balances and related ratios. I C Sovet Apart Los Rios Hub x Quiz - Google Drive * Assignments SOC SP21ACX Audit Case Review Task 1 chegg.com/homework-help/partially completed-analytical-ratios-working paper Keystone chapter-6c problem-dp solution 9781260299434-ex HSBC Sevens World Connect - Home Yahoo Web Applications CalCareers ! Mail - Singh Sandh. G Google Home Cos Rios Co Sign out G Google = Chegg Study Textbook Solutions Expert Q&A NEW Practice Stud Bookmarks Show all steps: ON Chapter 6C, Problem 4P Current Liauties $11,845,852 $10,352,563 =1.144 2) Days Sales in Account Receivable Computed with Average Account Receivable Sales Sales per day 365 $92,586,051 365 -$2536604 Opening account receivable+ Average Account Receivable = closing Account Receivable 2 (58,534, 524 +510,235,457) 2 - $9,384.991 Days Sales Average A/R Sales per day 59,384,991 $253,660 = $36.99831 $37 ay ahead in class with practice exams O C - Type here to search completed-analytical-ratios-working-paper-keystone ... Connect - Home | Yahoo 4 Web Applications CalCareers Ma Chegg Study Textbook Solutions Expert Q&A NEL Practice 3 Bookmarks Chapter 6C, Problem 4P >) Allowance IUI DAU DEUS AN $104,000 $10,235,457 = 0.010 OR 1% 4) Bad Debts expenses/ Net Sales $256,678 $92,586,051 =.003 OR 0.3% 5) Total Liabilities to Net Worth Total liabilities Stockholder's Equity $10.776,243 $3,053,855 = 3.53 6) Return on Total Asset Net income Total Assets $229,877 $13,830,098 = 0.017 Rass with practice exams Search o 3 iit Chapter 6C, Problem 4P N 3 Bookm 2) Days Sales in Account Receivable Computed with Average Account Receivable Sales Sales per day 365 $92,586,051 365 -$2536604 Opening account receivable+ Average Account Receivable = closing Account Receivable 2 (58,534, 524 +510,235,457) 2 - $9,384.991 Days Sales Average A/R Sales per day 59,384,991 $253,660 = $36.99831 $37 ay ahead in class with practice exams O C - Type here to search completed-analytical-ratios-working-paper-keystone ... Connect - Home | Yahoo 4 Web Applications CalCareers Ma Chegg Study Textbook Solutions Expert Q&A NEL Practice 3 Bookmarks Chapter 6C, Problem 4P >) Allowance IUI DAU DEUS AN $104,000 $10,235,457 = 0.010 OR 1% 4) Bad Debts expenses/ Net Sales $256,678 $92,586,051 =.003 OR 0.3% 5) Total Liabilities to Net Worth Total liabilities Stockholder's Equity $10.776,243 $3,053,855 = 3.53 6) Return on Total Asset Net income Total Assets $229,877 $13,830,098 = 0.017 Rass with practice exams Search o 3 iit Chapter 6C, Problem 4P N 3 Bookm
