Prepare the Audit planning memo using the RAMP methodology.

Quon Queso Inc. Statement of Earnings For the period ended December 31, 2016
Revenue	547,500
COGS	191,625
Gross Profit	355,875
Expenses
Advertising Expense	27,375
Insurance Expense	2,500
Property Taxes	5,000
General and administrative expenses	16,425
Salary	202,575
Depreciation expense	28,900
EBIT	73,100
Interest expense	13,232
EBT	59,868
Income Tax Expense	17,960
Net Income	41,907

Quon Queso Inc. Statement of Retained Earnings For the period ended December 31, 2016
Balance, December 31, 2015	0
Net profit	41,907
Dividends	25,000
Balance, December 31, 2016	16,907

Exhibit 1 (continued)

Quon Queso Inc. Balance Sheet As at December 31, 2016
Assets
Current
Cash	11,232
Inventory	20,000
Non-Current
Bulding, net	393,100
Equipment, net	108,000
Total	532,332
Liabilities
Current
Accounts payable	5,000
Short-term debt	20,171
Non-current
Longterm Debt	410,253
Share Holders Equity
Common Shares	80,000
R.E	16,907
Total L + S.E	532,332