Preliminary Analytical Procedures; Required:

Perform preliminary analytical procedures analysis on the current$-$year unaudited financial statements for the purpose of identifying accounts that you want to investigate further.

Calculate comparative and common$-$size $($to $2$ decimal points$)$ financial statements.

Add subtotals for operating income, current assets, current liabilities, & total liabilities in the statements.

Assume that all sales are credit sales. Please set up $6$ columns in an excel file in the following order:

$1)$ Prior year in $$,2)$ prior year common$-$sized, $3)$ current year in $$,4)$ current year common$-$sized $5)$ $ change between current yr$.$ and prior yr$.,6)\%$ change between current yr$.$ and prior yr$.$

Also calculate $5$ Balance Sheet ratios, and $5$ Operations Ratios.

For the ratios, calculate the prior year, current year, and percent change.

Note: There were no dividends paid at any time. The co$.$ is to maintain a current ratio of $2\mathrm{.}0,$ per the bank.

Once your calculations are completed, identify at least $4$ accounts that you should investigate further in your substantive testing. Explain why you want to investigate these accounts.