Please help, really struggling with this project. Answers for questions a-h are required.
effective for the audit of the financial statements for the year ended December 31 located in Detroit corporation, with its he The company been in existence for 35 years and creates powerful diesel engines for boats, trucks, and was recently acquired h manufacturing firm based out of Dallas, Texas. Solar-Electro produces rom a engines. The extremely profitable in the future as the focus on global climate change continues and vehicles. Finally, the third division, Machine-Tech, engages This division, also new to in a wide variety of machine service and repair operations recently agreed to evaluate this year's in order to focus more on core manufacturing. However, before any sale will be made, the board has operating results may have the effect of keeping the division as part of Pinnacle for the next few years. The vice president results. Excellent Tech is committed to making it profitable. PART to focus your attention on two purposes ofana where there is an increased of misstatements. two years. Analyze the yearto-year change in account balance for at least five financial statement line items. Document the trend analysis in a format similar to the % Change Net sales s 196-199 and observations about Pinnacle's business, including your assessment of the client's d. Go to the Pinnacle link on the textbook Web site (www and open the Pinnacle income statement, which is for all three years. for an example. Use which you believe there is a concern about material misstatements. Use a format similar to the following: Estimate of S Amount of Potential FIGURE 8-9 Pinnacle Manufacturing Financial Statements Income Statement For the Year Ended December 3 2016 2015 2014 Nat ale Cost of goods sol 09,28478 -101,988,165 41452,848 4,275,110 2181 948 Groas profi 33,241,108 457,140 37,177.73838133,96 Income from operatioms Other revenues and ais Other experses and losses Income belore incoma tax 196.569 22397953 3,059,187 2093,16 897,352 1.341.53 717.65 Net incoma for the yar 209 725 1038411 $L04 $1.72 Pinnacle Manufacturing Company Balance Sheet As of December 3I 2015 2014 Cash and cash equivalents Net recaivables 8419857 5.537.18 ,934409 5.271 503 13042 145 172,27 3,171,74 Other current e 1406 199 58268,732 1,625,10 Property, plane, and squipment Accounts payable % 12,969A6 $ 9,46A776 7.seL374 0.298 148 21526,804 24420.09022,342,00622379920 5375,81 2067,6437360 30,413 148 9,672 470 682 55 8,941595 Other current biies Tocal curree lsble dabr 4833 238 1,321,51 1000,000 5,717,645 42,474,182 1,000.000 5,717445 41,435,77 Additional paid-in capital 15.717.645 Tocal stockholdes equity e. Use the three divisional income statements in the Pinnacle Financials Excel file site to prepare a common-size income statement for each of the three work on the Web divisions for all three years. sheet in the Excel file. Use the information to identify accounts for which you believe there is a concern about material misstatements. Use a format similar to the one in Each division's income statenent is in a Explain whether you believe the information in requirement d. or e.provides the most useful data for evaluating the potential for misstatements. Explain why. g. Analyze the account balances for accounts receivable, inventory, and shortjcurrent ong-term debt. Describe any observations about those accounts and discuss addi tional information you want to consider during the current year audit. h. Based on your calculations, assess the likelihood (high, medium, or low) that Pinnacle is likely to fail financially in the next 12 months
