Case 3: Apollo Shoes Case- Preliminary Analytical Procedures Assignment Due April 18'h by the beginning of class. One group member submits through Blackboard Use the Apollo nancial statements on Blackboard (Assignmentsmpollo Cases\\Apollo Planning Files) to perform preliminary analytical procedures on the balance sheet and income statement for 20x2 (labeled as \"current year\"). Please note there are two tabs to the spreadsheet. Include the following steps in your preliminary analytical procedures: 1. Conduct the following procedures: a. b. Balance sheet: Conduct horizontal analysis by comparing current-year account balances to prior-year account balances. Calculate percentage changes year over year. Income statement: Conduct horizontal analysis and vertical analysis. For the vertical analysis, divide each account by net sales. Compare the percentages for the current year to the prior year. Choose five accounts that have changed significantly (you'll have to decide what a significant change is), and label them with tickmarks A through E to the right of your horizontallvertical analysis. 2. Write a group memo with the following sections describing your audit procedures: a. b. C. Purpose: describe the purpose of the workpaper (e.g., to conduct preliminary analytical procedures . . .). Procedures: describe that you conducted horizontal and vertical analysis considering significant uctuations. Notes: Include the lettered ticlcmarks A through E. For each letter, write a brief note about the uctuation as shown on the financial statements. Ordinarily, preliminary analytical procedures would be followed by a discussion with the client to determine causes for the uctuations. Since you can't speak to the client, list any cause of which you are aware (you may have learned something from Case 1 Fraud Brainstorming). If you can't identify a reason for the uctuation, describe why you think the account might be correct or incorrect. Don't worry too much about whether your reason is realistic, just do your best)