PART 1 - ANALYZING P&l DATA
The following information is available for Pinecrest Motors Inc. ($ in millions):
Net sales	$ 23.2	$ 21.7	$ 19.6	$ 17.4
Cost of goods sold	17.1	16.8	15.2	13.5
Beginning finished goods inventory	2.3	2.1	1.9	1.5
Ending finished goods inventory	2.9	2.3	2.1	1.9
Materials purchased	10.6	8.8	7.5	7.1
1. Calculate and present the following ratios for each year:
- Gross profit percentage
- Inventory turnover
- Cost of materials purchased to cost of finished goods produced
2. Analyze the results obtained in your ratio calculations:
- Describe the change in each ratio you observed in 2019
- Discuss at least two possible causes of each change observed
- For each possible cause, describe the risk associated with this cause
- For each possible cause, create an internal control that will mitigate the potential effect of the risk
3. Considering that you are performing planning for an internal audit that you will be starting next week, prepare an Audit Work Program with three audit steps for each of the possible causes