Use analytic procedures for those that should be comparable to those in the previous year. For example, for the payroll taxes, compare last year's numbers as a percentage (ratio) of payroll expense and compare to this year's ratio. Cost of Goods Sold should remain relatively constant as a percentage of sales, unless suppliers' costs have gone up or sales prices have changed. The same should be true for freight and warranty expenses
Apollo Shoes, Inc.
Schedule of Expenses
For Year Ended 12/31/2006
PBC

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(Audited) Balance Unaudited Balance Acct # 12/31/2007 Account Title 12/31/2006 Comments $130,246,645.26 50000 Cost of Goods Sold $141,569,221.61 57500 Freight $4,302,951.46 $4,236,263.09 Advertising Expense $897,140.01 60000 $986,854.01 61000 Auto Expenses $208,974.39 $214,502.80 $31,212,334.17 62000 Research $212,864.02 64000 Depreciation Expense $133,000.00 $446,000.00 64500 $4,720,715.56 Warehouse Salaries $4,633,383.82 Property Tax Expense $80,495.32 S84,332.45 65000 Legal and Prof Expense $3,605,133.96 66000 $1,902,224.45 Bad Debt Expense $1,622,425.99 67000 S0.00 Insurance Expense 68000 S853,942.65 $36,106.92 Maintenance Expense $61,136.04 70000 $49,502.87 $135,642.99 70100 Utilities $137,332.18 S52,599.02 70110 Telephone Expense $76,373.78 70120 Postage Expense $128,033.21 S77,803.61 S17,023.27 Office Expense $24,891.82 71000 $1,550,989.06 72000 Payroll Tax Exp S1,577,811.85 Pension/Profit-Sha 73000 $3,000,000.00 $3,300,000.00 Rent or Lease Expense 2,603,485.87 $16,875,305.98 S1,203,574.00 S16,197,225.43 74000 77500 Administrate 78000 Interest Expense 78500 Income Tax Expense - Federal $2,365,000.00 78510 Income Tax Expense - State 89000 Other Expense 875,000.00 $2,591,736.50 $13,069,000.00 $429,000.00 $2,241,000.00 19,172,000.00 S0.00 $236,407,993.58 $183,608,985.84