Excel Jovanie Pau Insert Home Draw Page Layout Formulas Data Review View Help OSearch X 11 Calibri A* A ab EInsert General Paste X Delete BIU EEEE E AS Conditional Format as $% Cell .00 Formatting Table Styles FFormat Clipboard Font Alignment Number Styles Cells fx A B C D E F G H K L M N P APb and APb are Accounts Payable at end and beginning of year PUR are inventory purchases during the year CD is cash disbursements during the year le and Ib are physical inventory amounts at end and beginning fo year IADD is additions to physical inventory (that is, the debits to Inventory for inventory that has be received) COS is cost of sales for the year (that is, the credits to Inventory for inventory that has been sold and shipped) Under usual business conditions, PUR tends to be > CD Suppose you have the following indicators on selected ratios: PUR/APe PUR/IADD PUR/CD 1 2 3 4a What misstatement could explain the observed indicators? 4 6 7 For the misstatment condition you identified in a, would the four variables in the ratios appear to be higher than expected, lower than expected or about the same as expected? 8 4b Enter H, L or S 50 81 CD IADD APe PUR (+ 12 3 4 Excel Jovanie Pau Insert Home Draw Page Layout Formulas Data Review View Help OSearch X 11 Calibri A* A ab EInsert General Paste X Delete BIU EEEE E AS Conditional Format as $% Cell .00 Formatting Table Styles FFormat Clipboard Font Alignment Number Styles Cells fx A B C D E F G H K L M N P APb and APb are Accounts Payable at end and beginning of year PUR are inventory purchases during the year CD is cash disbursements during the year le and Ib are physical inventory amounts at end and beginning fo year IADD is additions to physical inventory (that is, the debits to Inventory for inventory that has be received) COS is cost of sales for the year (that is, the credits to Inventory for inventory that has been sold and shipped) Under usual business conditions, PUR tends to be > CD Suppose you have the following indicators on selected ratios: PUR/APe PUR/IADD PUR/CD 1 2 3 4a What misstatement could explain the observed indicators? 4 6 7 For the misstatment condition you identified in a, would the four variables in the ratios appear to be higher than expected, lower than expected or about the same as expected? 8 4b Enter H, L or S 50 81 CD IADD APe PUR (+ 12 3 4