Question
Year 1 Year 2 Year 3 Year 4 Year 5 Sales $100,000 $105,000 $110,250 $137,812 $206,718 COGS 75,000 78,750 82,687.50 66,150 59,535 Margin 25,000 26,250
|
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
| Sales | $100,000 | $105,000 | $110,250 | $137,812 | $206,718 |
| COGS | 75,000 | 78,750 | 82,687.50 | 66,150 | 59,535 |
| Margin | 25,000 | 26,250 | 27,562.50 | 71,662.50 | 147,183.75 |
Perform vertical analysis of the data in the table to indicate any potential red flags regarding possible understatement of the COGS.
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Auditing And Other Assurance Services
Authors: Alvin Arens, James Loebbecke, W Lemon, Ingrid Splettstoesser
9th Canadian Edition
0130091243, 978-0130091246
