54%(24)13 out of 24 people found this document helpful
This preview shows page 5 - 11 out of 16 pages.
How does Proli compare to the industry?A = Agreed information to reference book containing industry statisticsAuditor summary of profitability: Are there any specific accounts that should be tested more thoroughly than others? Auditor summary of solvency: Are there any specific accounts that should be tested more thoroughly than others? Auditor summary of liquidity: Are there any specific accounts that should be tested more thoroughly than others?AUDITOR OVERALL CONCLUSION: Based on this analysis, which areas deserve greater audit emphasis? *Note: 2011 balances are not available so end-of-year amounts rather than averages are used to calculate ratios. RP
Proli FootwearVertical Analysis ($ in 1,000)December 31, 2014BalanceIndustryCash and Cash Equivalents3190.3%5.2%ATrade Accounts Receivable, net25,46623.7%19.8%AInventories43,66840.7%46.1%AOther Current Assets4,7184.4%2.3%ATotal Current Assets74,17169.1%73.4%ATotal Plant Assets15,38114.3%16.1%ATotal Intangible Assets14,56813.6%2.4%AOther Assets3,2853.1%8.1%A107,405100.0%100.0%Current Maturities of Long-Term Liabilities4410.4%3.1%ANotes Payable12,80011.9%16.6%AAccounts Payable and Accrued Expenses11,73510.9%10.3%ATotal Current Liabilities24,97623.3%38.3%ALong Term Debt and Lease Obligations5,9625.6%10.7%AOther Long-Term Liabilities3,3573.1%4.1%A34,29531.9%53.1%Common Stock500.0%Additional Paid in Capital22,50020.9%Retained Earnings50,55847.1%73,10868.1%46.9%107,403100.0%100.0%Auditor Overall Conclusion: A = Agreed information to reference book containing industry statisticsProli FootwearVertical Analysis ($ in 1,000)December 31, 2014Common SizeAuditor Summary: Exceeds, below, equal to industryTotal AssetsTotal LiabilitiesTotal Stockholders' EquityTotal Liabilities and Stockholders' Equity
BalanceIndustryNet Sales146,745100.0%100.0%Cost of Goods Sold108,71274.1%66.9%AGross Profit38,03325.9%33.1%ASelling and Administrative Expenses32,87622.4%29.2%AOperating Income5,1573.5%3.9%AOther Income/(Expense)(1,465)-1.0%1.3%AIncome before Income Taxes3,6922.5%2.6%AIncome Tax Expense1,6001.1%2,0921.4%Auditor Overall Conclusion: A = Agreed information to reference book containing industry statisticsCommon SizeAuditor Summary: Exceeds, below, equal to industryNet Income
P R O L I F O O T W E A RW O R K I N G T R I A L B A L A N C E - D E C E M B AccountPreliminary BalancesAccounts#DebitCreditImprest Petty Cash Fund10003,000Cash-Operating Account1010166,083Cash-Payroll Account10200Cash-Treasury Bills1030150,000Trade Accounts Receivable120026,566,100Allowance for Doubtful Accounts12501,100,000Other Accounts Receivable12600Inventories: Raw Materials13106,550,104Inventories: Work in Process13150Inventories: Finished Goods132037,117,696Prepaid Expenses14004,717,900Land15111,879,000Buildings15123,464,840Leased Buildings15133,489,988Manufacturing Equipment152114,992,700Warehouse Equipment152213,795,400Office Equipment15233,539,800Accumulated Depreciation-Buildings15313,534,647Accumulated Depreciation-Leased Builds15322,708,170Accumulated Depreciation-Manufacturing Equipment153312,693,959Accumulated Depreciation-Warehouse Equipment15344,909,542Accumulated Depreciation-Office Equipment15351,934,198P R O L I F O O T W E A RW O R K I N G T R I A L