Instruction Sheet Auditing Term Project Pinnacle Manufacturing

We will not be doing every requirement as listed in the book, so use this instruction sheet as your guide. webisite: www.pearsonhighered.com/arens - be sure to select "Auditing and Assurance Services, 15/E" - Select "Pinnnacle Files" - download Chapter 10 matrices (excel or word, whichever you prefer) - download Pinnacle Financials. Use these to prepare common-size statements, ratios and analysis.

Part I - Chapter 8 - Analytical procedures due: Unit 5

Problem 8-39

Read through background information

Requirement a:Complete as written

Requirement b:Calculate the following ratios:

(1)Current ratio;(2)Debt to equity ratio; (3) Net Inc. bef tax/sales(4)Gross profit percent; and (5)Inventory turnover.

** Note for inventory turnover calculation for 2011 you will have no previousyear inventory amount to average with, so just use the 2011 amount for inventory.

Requirement c:Answer question

Requirement d:Prepare common size statements and complete problem aswritten.

Requirement e:Prepare common size statements and complete problem aswritten.

Requirement f:Complete as written

Requirement g:Complete as written

Requirement h:Complete as written

**Attached is a copy of the problem in the book**