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Isaac, CPA, is auditing Fun Fitness Inc., a calendar$-$year corporation. He is performing analytical procedures relative to the sales account for Year $2.$ He also audited the consolidated financial statements for Fun Fitness in Year $1$ and issued an unmodified opinion.

Isaac has set materiality at $$40,000,$ or $4$ percent change for year$-$over$-$year comparisons.

For each type of analytical procedure, consider the information in the exhibits and:

$$ Enter the auditor's calculation$/$expectation for Year $2.$ Round all dollar amounts to the nearest dollar and all percentages to the nearest tenth of a percent.

$$ Evaluate the reliability of data from which the expectation is developed. Select from the choices available. Selections may be used once, more than once, or not at all.

$$ Evaluate the significance of the difference for each analytical procedure. Select from the choices available. Selections may be used once, more than once, or not at all.

$$ The information in the Analytics Definitions exhibit must be used for all financial ratio calculations.