Johnson Clock Company sells specialty clocks, watches and other time-keeping devices. Since its inception, the company has sold items through its home office store and at industry and collector trade shows around the country. To meet the demand from collectors around the world, the company began selling items through its Internet website three years ago. Recent financial information about Johnson's sales is summarised in the table that follows.

REQUIRED

Using the information given, design and perform analytical procedures for the sales and collection cycle at Johnson Clock Company. Based on the results of your analytical procedures, describe how the results related to the Internet-based sales differ from the home office and trade show sales.

Tolerable error for sales and receivables is $12 000.

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Year ended 30/6/X4 Year ended 30/6/X3 Year ended 30/6/X2 Sales Home office Trade show Intermet-based $1 279 480 TT3255 147 772 $1 218 552 739 259 122 462 $1 163 851 704 391 52 884 Sales returns: Home office Trade show Intermet-based $25 589 13 946 13 254 $23 152 13 676 11 022 $25 605 12 679 4 760 Cost of goods sold Home office Trade show Intemet-based $831 662 491 023 81 275 $816 429 480 518 66 129 $768 142 454 332 28 822 Receivables related to sales from: Home office Trade show Intemet-based $126 195 74 149 3 239 $123 524 68 862 3 020 $127 545 67 544 1159