VALLEY PUBLISHING COMPANY

TB 1 of 4

RB
Working Trial Balance--Balance Sheet Accounts
12/31/20x1
PRELIMINARY ANALYTICAL REVIEW

ASSETS

ACCOUNT
NUMBER

1/12/X2

WORK

PER

PER

PERCENT

PAPER
REF

AUDIT
12/31/x1

BOOKS
12/31/x2

OF
CHANGE

PERCENT OF TOTAL ASST

-

COMMENTS
-

12/31/x1

12/31/x2

Cash-Central State Bank-General

111

111,529

98,591

-11.6%

4.9%

4.4%

Amounts reasonable

Cash-Central State Bank-Payroll

112

2,000

2,000

0.0%

0.1%

0.1%

Amounts reasonable

Cash-Albany National Bank

113

132,100

167,100

91.0%

5.7%

7.5%

Needs explanation

Petty Cash

115

2,000

2,000

0.0%

0.1%

0.1%

Amounts reasonable

Trade Accounts Receivable

121

475,205

511,562

7.7%

20.7%

23.0%

Amounts reasonable

Allow for Doubtful Accts

129

-38,500

-40,800

6.0%

-1.7%

-1.8%

Amounts reasonable

Newsprint Inventory

131

180,896

180,896

0.0%

7.9%

8.1%

Significant increase

Prepaid Insurance

141

10,160

10,160

0.0%
111,529

0.4%

0.5%

Needs explanation

Prepaid Rent

142

84,000

84,000

3.7%

3.7%

Amounts reasonable

0.0%

0.0%

5.9%

6.1%

82.8%
-36.0%

85.2%
-41.4%

Amounts reasonable - Decr

Amounts reasonable-Depre

4.8%
-1.8%

4.9%
-2.4%

Amounts reasonable
Amounts reasonable-Depre

2,000
Deferred Taxes [Asset]

151

0
132,100

Investments-General
Other Assets

201
202

135,000
0

135,000
0

Printing Equipment
Accum depr-Printing Equip

330
339

1,903,340
-827,033

1,898,340
-922,200

Furniture and Equipment

Accum depr-Furniture & Fix

340
349

110,240
-41,576

110,240
-52,600

Amounts reasonable

2,000

- 51
475,205

-38,500

180,896

Computers
Accum depr-Computers

350
359

96,655
-38,368
------------------2,297,648
-------------------

TOTAL ASSETS

108,460
-64,008
------------------2,228,741
-------------------

10,160

4.2%
-1.7%
-----------100.0%
======

84,000
-3.0%
==========

4.9%
-2.9%
-----------100.0%
======

Amounts reasonable
Needs explanation

::

VALLEY PUBLISHING COMPANY

TB 2 of 4

RB
Working Trial Balance--Balance Sheet Accounts
12/31/20x1
PRELIMINARY ANALYTICAL REVIEW

LIABILITIES

ACCOUNT
NUMBER

1/12/X2

WORK

PER

PER

PERCENT

PAPER
REF

AUDIT
12/31/x0

BOOKS
12/31/x1

OF
CHANGE

PERCENT OF TOTAL ASST

COMMENTS

12/31/x0

12/31/x1

Short Term Debt

411

Vouchers Payable

421

-128,670

-105,640

-17.9%

5.7%

4.9%

Is not uneasonable

Accrued Payroll-Net

431

-89,148

-94,416

5.9%

3.9%

4.3%

Amount reasonable

Accrued Payroll Taxes

432

-36,460

-39,494

8.3%

1.6%

1.8%

Amount reasonable

Accrued Property Taxes

433

-37,625

-39,600

5.2%

1.7%

1.8%

Amount reasonable

Accrued Pensions

435

-13,940

-15,196

9.0%

0.6%

0.7%

Amount reasonable

Unearned Subcription Revenue

441

-104,962

-114,952

9.5%

5.6%

5.3%

Amount reasonable

Amounts Due Carriers

442

-21,115

-21,855

3.5%

1.5%

1.0%

Amount reasonable

Federal Income Taxes Pay

451

-12,894

-100.0%

0.6%

0.0%

See disposition

Dividends Payable

461

-126,000

-90,000

-28.6%

5.6%

4.1%

See disposition

Long Term Debt

510

-700,000

-500,000

-28.6%

30.9%

23.0%

- 51

Significant decrease

Deferred Federal Income Txs

550

12,800

12,800

0.0%

-0.6%

-0.6%

Amount reasonable

Capital Stock

611

-450,000

-450,000

0.0%

19.9%

20.7%

Amount reasonable

Paid-in Capital

612

Retained Earnings

621

-300,021

-467,071

55.7%

13.2%

21.5%

Increase due to earnings

Current Net Income

622

-257,050
-------------------2,265,085
------------------32,563
==========

-247,198
-------------------2,172,622
------------------56,119
==========

-3.8%
-------------------4.1%
==========

11.3%
-----------100.0%
======

11.4%
-----------100.0%
======

TB/3

TOTAL LIABILITIES & EQUITY

TOTAL ASSETS LESS EQUITIES

Slight decrease in earnings

Decrease in assets ($100,0

::

VALLEY PUBLISHING COMPANY

TB 3 of 4

RB
Working Trial Balance--Income Statement Accounts
12/31/20x1
PRELIMINARY ANALYTICAL REVIEW

REVENUE

ACCOUNT
NUMBER

1/12/X2

WORK

PER

PER

PERCENT

PAPER

AUDIT
12/31/x0

BOOKS
12/31/x1

OF
CHANGE

REF

PERCENT OF NET SALES

-

COMMENTS
-

12/31/x0

12/31/x1

Advertising-Local Display
Advertising-Nat Display
Advertising-Classified

711
712
713

-3,452,863
-997,861
-979,382

-3,587,494
-1,060,538
-1,044,489

3.9%
6.3%
6.6%

55.9%
16.2%
15.9%

55.0%
16.3%
16.0%

Amount reasonable
Amount reasonable
Amount reasonable

Publication Sales

721

-747,689
-------------------6,177,795

-829,391
-------------------6,521,912

10.9%
------------------5.6%

12.1%
-----------100.0%

12.7%
-----------100.0%

Amount reasonable

5,740,488
-------------------

6,142,350
-------------------

7.0%
-------------------

-92.9%
------------

-94.2%
------------

Increase - see TB/4 below

TOTAL REVENUE

EXPENSES
---------------

TB4

- 51

Amount reasonable - over a

NET INCOME FROM OPERATIONS

-437,307
-------------------

-379,562
-------------------

-13.2%
-------------------

7.1%
------------

5.8%
------------

decrease

-18,000

-18,000

0.0%

0.3%

0.3%

Amount reasonable

OTHER (REVENUE) & EXPENSE

--------------Income from Investments

911

Gain(Loss)-Sale of Assets

912

Interest Income

914

-2,100

N/A

0.0%

0.0%

New

Miscellaneous Income

919

-3,037

-3,536

16.4%

0.0%

0.1%

Amount reasonable

Interest Expense

921

64,000
------------------42,963
-------------------394,344

56,000
------------------32,364
-------------------347,198

-12.5%
-------------------24.7%
-------------------12.0%

-1.0%
------------0.7%
-----------6.4%

-0.9%
------------0.5%
-----------5.6%

137,294
-------------------257,050
==========

100,000
-------------------247,198
==========

-27.2%
-------------------3.8%
==========

-2.2%
-----------4.2%
======

-1.5%
-----------3.8%
======

NET OTHER REV & EXP

INCOME BEFORE INCOME TAX
Est Federal Income Tax

951

NET INCOME

TB2

Amount reasonable - pay do

Decrease in income. Still ve

profitable. Certain risks
This is only the estimated p

Decrease [See above, incom

::

VALLEY PUBLISHING COMPANY

TB 4 of 4

RB
Working Trial Balance--Income Statement Accounts
12/31/20x1
PRELIMINARY ANALYTICAL REVIEW

EXPENSE
Newsprint and Ink

ACCOUNT
NUMBER
811

- 51

WORK

PER

PAPER

AUDIT
12/31/x0

REF

516,861

PER

PERCENT

BOOKS
12/31/x1

OF
CHANGE

539,690

4.4%

1/12/X2
PERCENT OF NET SALES
-

COMMENTS
-

12/31/x0

12/31/x1

-8.4%

-8.3%

Amount reasonable

Salaries

821

2,486,542

2,730,388

9.8%

-40.2%

-41.9%

Advertising Commission

822

450,883

473,439

5.0%

-7.3%

-7.3%

Amount reasonable

Payroll Taxes

823

200,684

217,186

8.2%

-3.2%

-3.3%

Significant increase

Employee Benefits

824

167,231

182,661

9.2%

-2.7%

-2.8%

Significant increase

Correspondent's Fees

831

139,392

145,200

4.2%

-2.3%

-2.2%

Amount reasonable

Newspaper Services
Photo and Engraving
Circulation and Delivery
Supplies

832
833
834
835

218,766
127,342
258,559
69,214

235,280
132,683
266,556
72,696

7.5%
4.2%
3.1%
5.0%

-3.5%
-2.1%
-4.2%
-1.1%

-3.6%
-2.0%
-4.1%
-1.1%

Amount reasonable
Amount reasonable
Amount reasonable
Amount reasonable

Rent

841

168,000

168,000

0.0%

-2.7%

-2.6%

Amount reasonable

Utilities

842

357,660

368,722

3.1%

-5.8%

-5.7%

Amount reasonable

Insurance

843

54,471

55,324

1.6%

-0.9%

-0.8%

Amount reasonable

Property Taxes

844

37,625

39,600

5.2%

-0.6%

-0.6%

Amount reasonable

Repairs & Maintenance

846

100,886

109,660

8.7%

-1.6%

-1.7%

Amount reasonable

Depreciation

847

128,512

131,831

2.6%

-2.1%

-2.0%

Amount reasonable

Professional Fees

851

62,113

70,810

14.0%

-1.0%

-1.1%

Significant increase

Est Loss from Doubt Accts

853

70,400

73,400

4.3%

-1.1%

-1.1%

Amount reasonable

Miscellaneous Expense

890

125,347

129,224

3.1%

-2.0%

-2.0%

Amount reasonable

------------------5,740,488
-------------------

------------------6,142,350
-------------------

------------------7.0%
-------------------

------------92.9%
------------

------------94.2%
------------

TOTAL OPERATING EXPENSES

TB3

- 51

Significant increase, nearly

1.3% of sales [$400,000] in

MENTS

DISPOSITION
-

s reasonable

s reasonable

xplanation

Will Audit in detail

s reasonable

s reasonable

s reasonable

nt increase

Will Audit in detail

xplanation

Will Audit in detail

s reasonable

s reasonable

s reasonable - Decrease
s reasonable-Depreciation

s reasonable
s reasonable-Depreciation

Will Audit in detail

- 51

s reasonable
xplanation

MENTS

Will Audit in detail

DISPOSITION
-

easonable

Will audit in detail &

search for unrecorded items

reasonable
Will relate to payroll changes

reasonable

reasonable

reasonable

reasonable

reasonable

nt decrease

Will compute amountd due

Board decision
Paying down loan

- 51

reasonable

reasonable

due to earnings

crease in earnings

Due to increase in expenses

e in assets ($100,000)

Due primarily to depreciation write

offs and decrease in debt
Offset somewhat by increase in
receivables & inventory

MENTS

DISPOSITION
-

reasonable
reasonable
reasonable

reasonable

reasonable - over all 5% increase in revenue

- see TB/4 below

- 51

Due primarily to increase in expenses

See below

reasonable

Determine source

reasonable

reasonable - pay down loan

e in income. Still very

able. Certain risks lower.
nly the estimated payments.

Due to increase in expenses.

Will determine during audit.
Amount will be determined
during the audit.
e [See above, income before FIT]

MENTS

DISPOSITION
-

reasonable

- 51

nt increase, nearly 10%

Audit in detail

reasonable

nt increase

Related to payroll increase

nt increase

Related to payroll increase

reasonable

reasonable
reasonable
reasonable
reasonable

reasonable

Audit in Detail

reasonable

reasonable

Audit in Detail

reasonable

Audit in Detail

reasonable

Audit in Detail

reasonable

nt increase

Audit in Detail

reasonable

reasonable

Audit in Detail

sales [$400,000] increase

primarily due to increase in payroll

& 3 to 4% increase in all other
expenses

- 51