THANK YOU FOR YOUR HELP

2-4-6 Oceanview Marine Company Preliminary Analytical Procedures: Identification of Accounts with Unexpected Fluctuations (continued) December 31, 2018 SE 210/14 Divisional Income Statement Accounts: Identify three divisional income statement accounts that you believe are nost likely to be misstated, and evaluate why the fluctuation (or lack thereof) is significant. Account & Division 2018 Bal. 2017 Bal. Evaluation Balance Sheet December 31, 2015 PBC 2015 2014 2013 ASSETS Current Assets Cash Accounts receivable: net (Notes 2 and 5) Inventories (Notes 1(a), 3, and 5) Prepaid expenses Deposits Total Current Assets Property, Plant, and Equipment (Notes 1(b) and 4) At cost, less accumulated depreciation TOTAL ASSETS $1,320,096 1.646,046 13,524,349 17.720 7,916 16,516,127 $1,089,978 1,285,593 12,356,400 15,826 5,484 14,753,281 $1,200,347 1.180.982 11,461,231 15,275 4,329 13,862,164 596,517 612,480 627,771 $17,112,644 $15,365,761 $14,489,935 LIABILITIES Current Liabilities Note payable -- Bank (Note 5) Accounts payable Accrued liabilities Federal income taxes payable Current portion of long-term debt (Note 6) Total Current Liabilities Long-term Liabilities Long-term debt (Note 6) TOTAL LIABILITIES $5,100,000 1.750,831 257,800 35,284 5,642 7,149,557 $4,250,000 1,403,247 217,003 45,990 5.642 5,921,882 $4,000,000 1,106,574 211,250 39,725 5,642 5,363, 191 409,824 7,559,381 415,466 6,337,348 421,108 5,784,299 STOCKHOLDERS' EQUITY Common stock (Note 7) 10,000 10,000 10.000 Additional paid-in capital 2,500,000 2,500,000 2,500,000 Retained earnings 7,043,263 6,518,413 6,195,636 Total Stockholders' Equity 9,553,263 9,028,413 8,705,636 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $17,112,644 $15,365,761 $14.489.935 04 9,553,213 9028,413 The accompanying notes are an integral part of these financial statements VE income and Retained Earnings December 31, 2015 1-2 PBC Sales Sales returns and allowances Net sales Cost of sales Gross profit 2015 2014 2013 $26,456,647 $22,889,060 $20,950,521 37,557 27,740 28,753 26,419,090 22,861,320 20.921,768 19,133,299 16,530,114 15,176 410 7,285,791 6,331,206 5 745,358 EXPENSES Accounting and auditing Advertising Depreciation Bad debt expense Business publications Cleaning services Fuel Garbage collection Insurance Interest Legal Licensing and certification fees Linen service Medical benefits Miscellaneous Office supplies Payroll benefits Pension expense 48,253 28,624 46,415 148,252 1.231 15,817 64,161 4,870 16,415 427,362 69.752 33,580 3,044 4,178 47.739 26,390 569.110 40.770 8.623 3,978 158,526 51,316 4,310,281 96,980 5,707 21,633 63,329 6,316,336 969,455 344,605 624,850 46,750 27,947 46,578 162,344 872 12,809 53,566 4,674 16,303 364,312 29,914 27.142 1,939 4,624 16,631 23,289 461.214 37.263 20.962 27,947 120,000 26,439 3,970,092 100,098 7,092 16,303 41,919 5,669,023 662,183 239,406 422,777 44,610 24,654 41,538 147,629 115 11,620 41,593 5,650 16,144 356,829 22,654 24,148 2,393 4,287 25,430 21,462 430,688 18,900 22,511 26,144 112,846 26,519 3.703,580 93,800 8,611 14,952 40,827 5.290.134 455,224 199,631 255,593 Postage and courier Property taxes Rent Repairs and maintenance Salaries and wages Security Telephone Travel and entertainment Utilities Total Expenses Net income before income tax Income tax expense NET INCOME Retained earnings at beginning of year Less: Dividends Retained earnings at end of year 6,518,413 100,000 $7,043,263 6,195,636 100,000 $6,518,413 6,040,043 100,000 $6.195.636 The accompanying notes are an integral part of these financial statements