On the tab performance materiality, I don't understand how to figure out what the performance materiality is for each account listed. Please help! This is a hard subject for me to understand!

Stanton Enterprises Determination of Materiality and Allocation to the Accounts 12/31/2013 DETERMINATION OF MATERIALITY: Income before taxes Possible adustments - estimated. - Adjusted net income before taxes - 5 percent - Rounding up or down - Carries to Account Level Allocation Worksheet Note: You should complete the Analytical Procedures worksheet before you complete this worksheet. You may discover certain accounts that may require adjustment during the audit such as the Allowance for Uncollectible Accounts Prelim. 12/31/13 Cash $243,689 Trade accounts receivable 3,544,009 Allowance for uncollectible acco Inventories Prepaid expenses Total current assets Performance Materiality Explanation for the amount selected for each account Easy to audit at low cost. (120,000) 4,520,902 29,500 8,218,100 Property, plant and equipment, at 12,945,255 Less: accumulated depreciation (4,382,990) 8,562,265 Goodwill Total assets Accounts payable 1,200,000 $17,980,365 $2,141,552 Bank loan payable 150,000 Easy to audit at low cost. Accrued liabilities 723,600 Easy to audit at low cost. Federal income taxes payable Current portion of long-term Total current liabilities Long-term debt 1,200,000 240,000 Easy to audit at low cost. 4,455,152 960,000 Easy to audit at low cost. Common stock 1,250,000 Easy to audit at low cost. Additional paid-in capital 2,469,921 Easy to audit at low cost. Retained earnings 8,845,292 Stockholders' equity: Total stockholders' equity Total liabilities and stockholders' 12,565,213 $17,980,365 $0 Stanton Enterprises Analysis of Financial Statements 12/31/2013 Preliminary % 12/31/2013 % Audited 12/31/2012 Cash $243,689 $133,981 Trade accounts receivable 3,544,009 2,224,921 -120,000 -215,000 4,520,902 3,888,400 Allowance for uncollectible accounts Inventories Prepaid expenses 29,500 24,700 8,218,100 6,057,002 At cost 12,945,255 9,922,534 Less, accumulated depreciation -4,382,990 -3,775,911 8,562,265 6,146,623 1,200,000 345,000 Total current assets Property, plant and equipment: Goodwill $17,980,365 Accounts payable 100% $12,548,625 $2,141,552 $2,526,789 Bank loan payable 150,000 0 Accrued liabilities 723,600 598,020 1,200,000 1,759,000 240,000 240,000 4,455,152 5,123,809 960,000 1,200,000 Common stock 1,250,000 1,000,000 Additional paid-in capital 2,469,921 1,333,801 Retained earnings 8,845,292 3,891,015 12,565,213 6,224,816 Federal income taxes payable Current portion of long-term debt Total current liabilities Long-term debt 100% Stockholder's equity: $17,980,365 100% $12,548,625 100% % Change Stanton Enterprises Analysis of Financial Statements 12/31/2013 Preliminary % 12/31/2013 Sales $43,994,931 Audited 12/31/2012 100% $32,258,015 Cost of goods sold 24,197,212 19,032,229 Gross profit 19,797,719 13,225,786 10,592,221 8,900,432 Pension cost 1,117,845 865,030 Interest cost 83,376 104,220 11,793,442 9,869,682 Income before taxes 8,004,277 3,356,104 Income tax expense 1,800,000 1,141,000 Net income 6,204,277 2,215,104 3,891,015 2,675,911 10,095,292 4,891,015 Selling, general and administrative expenses Beginning retained earnings % 100% % Change Stanton Enterprises Evidence Planning Worksheet 12/31/2013 ACCEPTABLE AUDIT RISK INHERENT RISK ANALYTICAL PROCEDURES Detail tie-in Existence Completeness Accuracy Classification Cutoff Realizable value Rights Performance materiality for Trade Accounts Receivable Performance materiality for Allowance for Uncollectible Accounts Total $ $