Analytical Review Apollo Shoes
Apollo Shoes, Inc.
Potential Problem Areas
December 31, 2011
The following refers to the Comparative Trial Balances, GA-7.1 through GA-7.5:
Accounts Receivable, Other Receivables, Allowance for Doubtful Accounts, Bad Debt ExpenseInventories and Reserve for Inventory Obsolescence
Prepaid Insurance and Insurance Expense
Machinery, Equipment, and Office Furniture
Accounts Payable
Taxes Payable
Line of Credit
Sales, Sales Returns, Net Sales – Relationship to Inventory
Research & Development
Administrative Wage Expense
Miscellaneous Income
The following refers to GA-7.5 – Selected Ratio Comparison:
Days Sales in Inventory
Days Sales in Accounts Receivable
Other points of interest:
7GA-7.1
Apollo Shoes, Inc.
Analytic Procedures
December 31, 2011
Audited
12/31/10 Unaudited 12/31/11 Change Acct. Account W/P Common Common # Title Ref. Balance Size Balance Size Amount Percentage
ASSETS 10100 Cash on Hand 1,987.28 0.01% 2,275.23 0.00% 287.95 14.49%
10200 Regular Checking Acct. 198,116.52 0.54% 532,125.92 0.41% 334,009.40 168.59%
10300 Payroll Checking Acct. 0 0.00% 0 0.00% 0 na
10400 Savings Account 3,044,958.13 8.28% 3,670,599.15 2.85% 625,641.02 20.55%
11000 Accounts Receivable 16,410,902.71 44.60% 49,780,259.98 38.50% 33,369,357.27 203.34%
11400 Other Receivables - 0.00% 1,000,000.00 0.77% 1,000,000.00 nm
11500 Allow. For Doubtful (1,262,819.88) -3.43% (1,254,009.75) -0.97% 8,810.13 -0.70%
12000 Inventory 18,825,205.24 67,424,527.50 52.33% 48,599,322.26 258.16%
12300 Res. For Inv. Obsoles. (3,012,000.00) -8.19% (867,000.00) -0.67% 2,145,000.00 -71.22%
14100 Prepaid Insurance 743,314.38 2.02% 3,374,213.78 2.61% 2,630,899.40 353.94%
14200 Prepaid Rent 200,000.00 0.54% 0 0.00% (200,000.00) -100.00%
14300 Office Supplies 7,406.82 0.02% 8,540.00 0.01% 1,133.18 15.30%
14400 Notes Receivable - Curr0 0.00% 0 0.00% 0 na
14700 Other Current Assets
Potential Problem Areas
December 31, 2011
The following refers to the Comparative Trial Balances, GA-7.1 through GA-7.5:
Accounts Receivable, Other Receivables, Allowance for Doubtful Accounts, Bad Debt ExpenseInventories and Reserve for Inventory Obsolescence
Prepaid Insurance and Insurance Expense
Machinery, Equipment, and Office Furniture
Accounts Payable
Taxes Payable
Line of Credit
Sales, Sales Returns, Net Sales – Relationship to Inventory
Research & Development
Administrative Wage Expense
Miscellaneous Income
The following refers to GA-7.5 – Selected Ratio Comparison:
Days Sales in Inventory
Days Sales in Accounts Receivable
Other points of interest:
7GA-7.1
Apollo Shoes, Inc.
Analytic Procedures
December 31, 2011
Audited
12/31/10 Unaudited 12/31/11 Change Acct. Account W/P Common Common # Title Ref. Balance Size Balance Size Amount Percentage
ASSETS 10100 Cash on Hand 1,987.28 0.01% 2,275.23 0.00% 287.95 14.49%
10200 Regular Checking Acct. 198,116.52 0.54% 532,125.92 0.41% 334,009.40 168.59%
10300 Payroll Checking Acct. 0 0.00% 0 0.00% 0 na
10400 Savings Account 3,044,958.13 8.28% 3,670,599.15 2.85% 625,641.02 20.55%
11000 Accounts Receivable 16,410,902.71 44.60% 49,780,259.98 38.50% 33,369,357.27 203.34%
11400 Other Receivables - 0.00% 1,000,000.00 0.77% 1,000,000.00 nm
11500 Allow. For Doubtful (1,262,819.88) -3.43% (1,254,009.75) -0.97% 8,810.13 -0.70%
12000 Inventory 18,825,205.24 67,424,527.50 52.33% 48,599,322.26 258.16%
12300 Res. For Inv. Obsoles. (3,012,000.00) -8.19% (867,000.00) -0.67% 2,145,000.00 -71.22%
14100 Prepaid Insurance 743,314.38 2.02% 3,374,213.78 2.61% 2,630,899.40 353.94%
14200 Prepaid Rent 200,000.00 0.54% 0 0.00% (200,000.00) -100.00%
14300 Office Supplies 7,406.82 0.02% 8,540.00 0.01% 1,133.18 15.30%
14400 Notes Receivable - Curr0 0.00% 0 0.00% 0 na
14700 Other Current Assets