The following data was taken from the production and accounting records for Casuccio Manufacturing, Inc.

Required

a. Calculate the following ratios for 2023, 2022, and 2021:

1. Sales to total assets.

2. Sales to production.

3. Revenue per unit sold.

4. Accounts receivable growth to sales growth.

5. Uncollectible accounts expense to net credit sales.

6. Uncollectible accounts expense to accounts receivable written off.

7. Accounts receivable turnover in days.

b. 1. Describe the implications of the resulting ratios for the auditor?s audit strategy for the year 2023.

2. What specific assertions are likely to be misstated?

3. How should the auditor respond in terms of potential audit tests?

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Unaudited Audited Audited 2022 2023 2021 Operating Data Capacity in units 450,000 450,000 450,000 Production in units 450,000 400,000 300,000 Inventory in units 32,000 28,000 21,000 Financial Data ($000) $ 35,200 $ 23,000 $ 27,500 $ 21,200 Total revenues $ 19,500 $ 4,300 Total assets $ 15,700 $ 5,900 $ 3,900 Accounts receivable, net Bad debt expense $ 175 135 105 Accounts receivable written off $ $ 165 125 100