Trial Balance

Cash
Short term investment securities
Accounts receivable
Allowance for uncollectible A/R
Inventory
Prepaid assets
Other current assets
Long-term Investment securities
PP&E - Equipment and machinery
PP&E - Buildings and improvements
PP&E - Land
Acc depr - Equipment and machinery
Acc depr - Buildings and improvements
Patents
Other long-term assets
Accounts payable
Accrued interest expense
Accrued employee payroll costs
Accrued employee benefits
Accrued equipment rental expense
Accrued other expenses
Other current liabilities
Long-term debt
Deferred tax liability
Common Stock
Additional paid-in-capital
Retained Earnings
Sales revenue
Cost of goods sold
SG&A - Payroll expense
SG&A - Commission Expense
SG&A - Employee benefits expense
SG&A - Advertising expense
SG&A - Shipping expense
SG&A - Bad debt expense
SG&A - Rental expense
SG&A - Other operating expenses
Interest expense
Depreciation and amortization expense
Other Expense
Provision for income taxes

12/31/2013

12/31/2012

30,215,000
46,587,000
58,417,000
(2,807,000)
29,284,000
1,612,000
15,347,000
38,850,000
150,100,000
115,200,000
37,040,000
(74,900,000)
(17,320,000)
2,041,000
11,382,000
55,593,080
6,250,000
6,035,000
9,745,000
2,493,000
7,285,000
15,224,000
150,000,000
15,463,000
5,000,000
65,000,000
102,959,920
499,521,000
320,254,000
48,753,000
11,248,000
7,955,000
9,452,000
10,728,000
9,524,000
7,830,000
8,540,000
11,000,000
3,850,000
315,000
19,528,080

28,745,000
42,680,000
46,983,000
(2,754,000)
23,450,000
1,468,000
12,487,000
37,385,000
137,283,000
113,411,000
37,040,000
(67,845,000)
(15,980,000)
10,879,000
53,102,000
7,500,000
5,837,000
9,283,000
1,792,000
6,638,000
13,875,000
150,000,000
14,789,000
5,000,000
65,000,000
72,416,000
452,047,000
311,588,000
40,537,000
10,520,000
6,492,000
8,475,000
9,526,000
9,328,000
7,254,000
6,789,000
12,000,000
3,485,000
240,000
10,067,070

Selected Key Business Drivers

Units sold
SG&A Employee Headcount

3,870,000
788

3,203,000
710

Trial Balance

Cash
Short term investment securities
Accounts receivable
Allowance for uncollectible A/R
Inventory
Prepaid assets
Other current assets
Long-term Investment securities
PP&E - Equipment and machinery
PP&E - Buildings and improvements
PP&E - Land
Acc depr - Equipment and machinery
Acc depr - Buildings and improvements
Patents
Other long-term assets

12/31/2013

30,215,000
46,587,000
58,417,000
(2,807,000)
29,284,000
1,612,000
15,347,000
38,850,000
150,100,000
115,200,000
37,040,000
(74,900,000)
(17,320,000)
2,041,000
11,382,000

Common
Size %
6.9%
10.6%
13.2%
-0.6%
6.6%
0.4%
3.5%
8.8%
34.0%
26.1%
8.4%
-17.0%
-3.9%
0.5%
2.6%

Total Assets

441,048,000

Accounts payable
Accrued interest expense
Accrued employee payroll costs
Accrued employee benefits
Accrued equipment rental expense
Accrued other expenses
Other current liabilities
Long-term debt
Deferred tax liability
Common Stock
Additional paid-in-capital

55,593,080
6,250,000
6,035,000
9,745,000
2,493,000
7,285,000
15,224,000
150,000,000
15,463,000
5,000,000
65,000,000

12.6%
1.3%
1.2%
2.2%
0.5%
1.5%
3.5%
34.0%
3.5%
1.1%
14.7%

Retained Earnings

102,959,920

23.3%

Total Liabilities

246,025,080

Sales revenue
Cost of goods sold

499,521,000
320,254,000

100.0%
64.1%

Gross Margin

179,267,000

35.9%

48,753,000
11,248,000
7,955,000

9.8%
2.3%
1.6%

SG&A - Payroll expense

SG&A - Commission Expense
SG&A - Employee benefits expense

SG&A - Advertising expense

SG&A - Shipping expense
SG&A - Bad debt expense
SG&A - Rental expense
SG&A - Other operating expenses
Interest expense
Depreciation and amortization expense
Other Expense
Provision for income taxes

9,452,000
10,728,000
9,524,000
7,830,000
8,540,000
11,000,000
3,850,000
315,000
19,528,080

1.9%
2.1%
1.9%
1.6%
1.7%
2.2%
0.8%
0.1%

Selected Key Business Drivers

Units sold
SG&A Employee Headcount

3,870,000
788

Accounts to be investigated:
1.Sales The revenue account is considered to be a fraud risk account and therefore should always
2.Other current assets The labeling of this account is ambiguous. Other could mean anything an
3.Accounts Receivable - This account grew 24.5%, yet revenues only grew 10.5%, this seems incon
4.
Other operating expenses - I would want to know more about what these expenses include. It gre

12/31/2012

28,745,000
42,680,000
46,983,000
(2,754,000)
23,450,000
1,468,000
12,487,000
37,385,000
137,283,000
113,411,000
37,040,000
(67,845,000)
(15,980,000)
-

Common
Size %

% Change from
Prior Year

7.1%
10.5%
11.6%
-0.7%
5.8%
0.4%
3.1%
9.2%
33.9%
28.0%
9.1%
-16.7%
-3.9%
0.0%

5.1%
9.2%
24.3%
1.9%
24.9%
9.8%
22.9%
3.9%
9.3%
1.6%
0.0%
10.4%
8.4%

2.7%

4.6%

53,102,000
7,500,000
5,837,000
9,283,000
1,792,000
6,638,000
13,875,000
150,000,000
14,789,000
5,000,000
65,000,000

13.1%
1.7%
1.3%
2.3%
0.4%
1.5%
3.4%
37.0%
3.6%
1.2%
16.0%

4.7%
-16.7%
3.4%
5.0%
39.1%
9.7%
9.7%
0.0%
4.6%
0.0%
0.0%

72,416,000

17.9%

42.2%

452,047,000
311,588,000

100.0%
68.9%

10.5%
2.8%

140,459,000

31.1%

27.6%

40,537,000
10,520,000
6,492,000

9.0%
2.3%
1.4%

20.3%
6.9%
22.5%

10,879,000
405,232,000

241,049,000

8,475,000
9,526,000
9,328,000
7,254,000
6,789,000
12,000,000
3,485,000
240,000
10,067,070

1.9%
2.1%
2.1%
1.6%
1.5%
2.7%
0.8%
0.1%

11.5%
12.6%
2.1%
7.9%
25.8%
-8.3%
10.5%
31.3%

3,203,000
710

nt and therefore should always be investigated further.

Other could mean anything and the fact that this account grew well over 10% is a red flag.
grew 10.5%, this seems inconsistent. It is possible that more customers paid on credit, however more investiga
these expenses include. It grew substantially and would have a direct effect on profits. I would to make sure th

dit, however more investigation would need to be done.

fits. I would to make sure this is not an error.