Analytical Review Apollo Shoes Essay example - 951 Words

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 amp; 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†¦show more content†¦Account W/P Common Common # Title Ref. Balance Size Balance Size Amount Percentage REVENUE 40000 Sales 246,172,918.44 102.33% 245,213,452.88 106.40% -959,465.56 -0.39% 41000 Sales Returns 4,497,583.20 1.87% 13,600,220.89 5.90% 9,102,637.69 202.39% 42000 Warranty Exp 1,100,281.48 0.46% 1,158,128.47 0.50% 57,846.99 5.26% Net Sales 240,575,053.76 100.00% 230,455,103.52 100.00% (10,119,950.24) -4.21% EXPENSES 50000 COGS 141,569,221.61 58.85% 130,246,645.26 56.52% (11,322,576.35) -8.00% Gross Margin 99,005,832.15 41.15% 100,208,458.26 43.48% 1,202,626.11 1.21% GA-7.4 OPERATING EXPENSES 57500 Freight 4,302,951.46 1.79% 4,236,263.09 1.84% (66,688.37) -1.55% 60000 Advertising Expense 897,140.01 0.37% 986,854.01 0.43% 89,714.00 10.00% 61000 Auto Expenses 208,974.39 0.09% 214,502.80 0.09% 5,528.41 2.65% 62000 Research amp; Development 31,212,334.17 12.97% 543,870.44 0.09% (30,668,463.73) -98.26% 64000 Depreciation Expense 133,000.00 0.06% 446,000.00 0.19% 313,000.00 235.34% 64500 Warehouse SalariesShow MoreRelatedBeginning the Audit Report Essay1934 Words   |  8 PagesTo: Senior Partner From: Kim Cummings Re: Apollo Shoes Audit Dear Senior Partner: As you know, our firm has been selected to perform the Apollo Shoes audit. 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