Prepare a 2-3 page analysis discussing what you found as a result of your analysis and what internal controls you would recommend to the owner of ABC Co. Statements of Income
For the year ended December 31,						2017	2016
Net Sales (less returns & allowances)						$ 930,560	$ 875,693		6%
Cost of Goods Sold						623,543	585,625		6%
Gross Margin						307,017	290,068		6%
Operating Expenses:
Advertising						1,843	1,972		-7%
Bad Debt Expense						17,683	13,923		27%
Depreciation and Amortization						14,095	12,870		10%
Dues & Subscriptions						364	375		-3%
Insurance						2,800	2,600		8%
Licenses & Fees						300	285		5%
Marketing & Promotion						10,925	11,452		-5%
Meals and Entertainment						4,512	3,985		13%
Office Expenses						1,611	1,543		4%
Office Supplies						2,000	2,035		-2%
Salaries & Wages						45,800	42,700		7%
Professional Fees						3,700	3,500		6%
Property Taxes						1,920	1,900		1%
Rent						42,500	41,800		2%
Repairs & Maintenance						700	680		3%
Shipping Delivery						450	570		-21%
Travel Expenses						41,862	35,587		18%
Utilities						7,300	6,950		5%
Leased Equipment						4,400	4,750		-7%
Other						665	654		2%
Total Operating Expenses						205,430	190,131		8%
Operating Income						101,587	99,937		2%
Interest Expense						2,658	2,432		9%
Other Income (interest, royalties)						5,620	5,725		-2%
Income Before Taxes						104,549	103,230		1%
Income Taxes						20,910	20,646		1%
Net Income						$ 83,639	$ 82,584		1%