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With the financial data which has been provided by the inexperienced staff assistant the most obvious analytical procedure to start with is to compare the 2005 financial date with the 2004 financial data. By analyzing the two years against each other, I have noticed that it appears Laramie Wire may be building up their inventory stores. I state this because their finished goods inventory has went up from $1,175,500 to $1,654,500 in just that one year. This is an increase of finished goods inventory of 40%. This is something which I believe significant attention should be paid to. The management criteria which I believe is applicable to this issue is the valuation or allocation assertion...
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