16-35 team e

PINNACLE MANUFACTURING

16-35 Part VII

Sunday, December 15, 2013

Cassie Rosado, Dyllan Holmes, Hanna Wong, Matthew Townley, Shemika Stinson, Traci Rood

Cassie Rosado, Dyllan Holmes, Hanna Wong, Matthew Townley, Shemika Stinson, Traci Rood

CUSNAM Accounts Payable FIBERCHEM 793,049.89 TODD-MACHINERY 531,073.93 RUFUS AUSTIN ANTIQUES 400,046.08 WELBURN MANUFACTURING 388,836.07 AMERICAN PRESS 340,767.94 CLEAN-O-RAMA, CO. 317,668.63 2771442.55SAFETY ENVELOPE CO 223,950.34 GOODMAN-RECHWELD 191,373.01 SABLEX INC 153,853.85 MACDONALD SVC CORPORATION 147,943.95 MICRON POWER SYSTEMS 136,071.37 FREEMAN FURNITURE - ATTN A/P 130,493.51 SELECT WASHING SERVICE INC 125,344.16 REMINGTON SUPPLY 123,411.24 SANDLER'S INC 120,075.63 SANDLERS,INC. 118,052.09 HOLY FAMILY HOSPITAL 117,916.83 TOMPKINS CORP 112,532.07 RULAND TV SERVICE 99,745.77 MISC. COD (TRADE) 95,901.28 MOBIL OIL 93,210.48 PROCESS & CONTROL EQUIP 89,080.78 LAS FLORES DESIGNS INC 88,644.92 NORRIS INDUSTRIES 88,314.64 SANDLERS VILLAGE IND 88,038.42 MOLD RITE CASTING CO 86,660.95 METADYNE CORP 85,432.51 GODWIN DRUG COMPANY 84,331.05 A & M SANDLER INC 81,348.54 UNIVERSITY OF CALIFORNIA 80,624.95 PERGAMENT MASON 80,482.46 R & B PRODUCTS 80,092.46 BURTON MARTIN 78,682.54 NATIONAL ELEVATOR & MACH CO 76,921.40 BEACH & HOOVER REFINING 76,408.79 AMERICAN BABY % USTC 75,432.73 PLAZA LIGHTING 75,160.96 BEARING DRIVES CO 73,017.24 WOODSTOVE & FIREPLACE 72,982.39 TECNI COS 72,678.14 THE HABERDASHERY CO 71,869.16 CABLE SYS % IND TRAF CONS 71,288.95 ALDERS WHSE 69,381.70 LEAN CORP 67,985.23 MCCOYS INC 67,936.32 SCANDEC USA INC 65,942.94 THE SERVICE CENTER 64,956.54 ZZZZ BANK ADJUSTMENTS 64,471.21 WEBER COMPANY 64,466.17

KOLMAR AUDIO 64,450.67 G P CHAMBERS CO 64,125.44 THE DUTTON COMPANY 63,882.02 HENDERSON PUMP CO 63,528.67 FINISH METALS INC 60,769.71 EDDIE VENTURA, INC. 60,255.55 FIBEROPTICS 60,102.78 UNIVERSITY OF MARYLAND 59,333.16 JETCO INT'L INC 57,700.30 MATERIAL FLOTATION IND 56,072.37 MARC LAWRENCE 55,316.05 CHRISTIAN BRIDGE BAKERY 53,703.45 J C LICHT CO-GLENDALE HTS 53,228.47 BOSTON SHOECASE CO 52,174.50 ADVENT SIGN MFG. CO. 51,750.00 HARRAH'S METALS, INC. 51,279.85 PACKAGE FORWARD INC 51,035.94 G & B MARINE INC % PMC LGSTCS 50,884.95 QUAKER TRANSANALYSIS 50,363.69 5212467LONG BEACH LAWN SERVICE 48,488.96 INNOVATIVE CONCEPTS INC 47,690.86 EVERHART CO 47,519.14 LIBERTY LIGHTING 46,802.78 GOOD HOUSE HOME VIDEO INC 46,472.67 AL. ALAMILLO 45,483.82 FOCUS CAMERA INC 44,577.51 AMERICAN QUALITY APPAREL, INC. 44,029.99 TV SALES & SERVICE 42,872.01 EMI AUTOMOTIVE GROUP 42,815.74 BELLCO 42,710.74 B&K MFG CO INC 42,668.50 DESSERTS BY BEN WEAVER 42,560.83 VERNON BEAR 40,105.62 TASSEL CO 39,794.23 COAST DIST SYS 37,403.58 TOWER INTERNATIONAL 37,299.57 VACUUM SERVICE 37,238.69 DYNAMIC METAL PRODUCTS 36,546.05 BELTON LAMP & SHADE OUTLET 36,061.56 B & L CHEMICAL CO 35,869.33 RECKNAGEL CO 35,392.28 FREIGHT LINES 34,273.28 CAL HANNAS INC 33,549.69 CUMBERLAND STEEL 33,172.11 THE VCR CLINIC 32,885.80 CYTEC ASSOC 32,486.59 FULLER TRAVEL 32,470.11 MULTIPAK PACKAGING 32,373.32 HERPIN'S NEON DESIGNS 31,721.04 OPEN SYSTEMS INC 31,171.84

BYRON USA 31,069.14 SORENSON DIE CASTINGS INC 30,959.46 ADVANCED COMPUTER 30,666.33 ABNER HOMECARE 30,636.94 RED HERRING INC 30,541.69 OTB TROY HILLS 29,402.16 TRANSCONTINENTAL SALES CO. 29,184.16 BRASS BOOK TRADING CO 28,923.29 EASTERN PHARMACY 28,860.53 CIRCLE INTL 28,303.70 WOOD STOVE CO INC 28,199.60 EXPAND SVCS 28,086.15 NORTH CONTROL IND INC 28,020.43 L & L TRUCKING SERVICE INC 27,804.76 LIBERTY TREE, INC. 27,561.14 D I T AUTOMOTIVE 27,166.23 BOOMER KITCHEN & BATH CTR 27,107.91 BECTON ELEC PROD % SCOTT AULT 26,991.76 B & G INDUSTRIES 26,608.10 ACCESSORY SVCS 26,588.26 PETERSON PHARM PRTNR 26,355.60 RANDOM CHOICE INC 26,304.97 PAUL P. ELLISON 26,209.72 PFS USA 26,096.87 NCAA / VM MARKETING / PE 25,959.58 BREAYER CORP 25,863.57 MILTON MATTRESS & FUTON 25,816.28 KARCH TECH SPLY 25,539.38 LOTUS EQUIPMENT LTD 25,171.10 NATURAL SERVICE INDUSTRY 25,000.59 RETAIL INDUSTRIES 24,818.66 TREND ACCOUNT 24,652.60 STERILIZATION TECH SER INC 24,290.38 GUARANTEED-TRANS OPER DEPT 23,775.62 ELECTRICAL DISTRIBUTING, 23,460.93 CARRIAGE'S 23,356.84 JACK'S INC. 23,119.71 INSUL MEDI 22,973.03 CRAFT BINDER ALL TO 22,617.02 PHYSICIAN SALES & SVC INC 22,550.59 TONY - COLL ONLY 22,424.47 SAMPSON MINING 22,282.08 A A HILL CORP 22,244.08 HOPEWELL DECORATIVE PKG 22,108.68 DIAMOND METAL STAMPING INC 21,854.36 PRESIDENT CAMERA INC 21,826.11 HAWKES INDUSTRIAL WEAR 21,763.06 LAB CRAFT ASSOC 21,577.00 PHILIP LAPINSKI INTL 20,723.20 HUNT'S AV SYSTEMS, INC. 20,657.59

GERODON INC 20,567.22 CONTINENTAL EXP INC 20,432.50 PEI CORP 20,424.10 CHELMSFORD FRUIT CTR 20,232.42 SHELBY TILE 20,223.46 MEMORIAL MICROWAVE CO 20,037.35 ASSISTED CARE PARTNERS INC 20,019.61 ENGELHARTS 19,771.17 NATIONAL BAKERY CO 19,307.45 GEORGE RODRIGUEZ 19,241.63 THE CARWASH**LEGAL****** 19,238.46 GOOD HOUSE VIDEO 19,145.21 NAUTICAL MAINE INC 19,018.04 KARL'S TV 19,002.42 BRAGG SUSPENSION PARTS 18,734.70 PROGRESSIVE HARDWARE CO 18,700.16 SUMITOMO DIAMOND CORP 18,611.24 COMMONWEALTH DIST. 18,559.24 TRAVIS WORKS 18,371.48 THOMAS POLLARD CO 18,202.56 UNIVERSITY C.C.,LC*LEGAL***** 18,105.20 WORLD DRUG COMPANY 17,852.36 XANTHAL FUND 17,472.65 MILL STREET RESTAURANT 17,391.85 SEMATECH AUDIO CO 17,320.18 CITA CORP 17,250.33 DOWNS CHENARD INC 17,127.55 NIMBUS ASSOCIATES 17,101.93 RAINBOW INC 17,022.63 GENETICS INSTITUTE 16,991.68 FACTORY LTG LOFT INC 16,593.97 MIDWEST SALES 16,513.90 MAC FARMS 16,207.67 MAXITE USA 15,961.05 MERRILL INDS 15,899.50 WEBER (BT) CO 15,884.80 NYC-HEALTH & HOSPITALS CORP 15,512.03 ALBERS APPLIANCE INC. 15,368.37 INTERNATIONAL MAIL SYS 15,331.02 TREASURE ADVERTISING 15,300.68 MUNI HLTH ORG INS CO 15,187.98 SEVILLE FASHIONS, INC. 15,124.12 INTERVAL CORP 15,068.14 ALLOID CO INC 15,000.54 GLOBE BUSINESS SUPPLY 14,965.31 COOPER ACCESSORIES & SUPPLY 14,918.98 ARTISAN GLASS INC 14,916.03 DELTA INSTALLATION 14,786.65 TILES OF AMERICA 14,362.58 MARVIN CHOC CO 14,175.20

MILTON JEWELERS 14,092.80 AIR PRODS & CHEMS-ACCTS PAYBL 14,053.45 MYSTIC CONCEPTS 14,010.30 MR. GLASS INC 13,618.16 WORLD PHOTONICS 13,563.97 PRESBYTERIAN HOSPITAL 13,560.56 MLCOM OFFICE EQUIP 13,513.14 AKZO TEMP 13,423.55 INNOVATIVE PAPER 13,422.51 THE T.V. SHOP 13,413.16 BLAKE WHITNEY 13,103.00 MI-CAR INC. 13,099.35 TYCO PIPE & STEEL 13,043.28 PRECISION PRODUCTS 12,905.93 THE ANNEX SHOPPE, INC. 12,890.89 WALL-BOARD PRODUCTS 12,850.80 HAMILTON CHIMNEY INC 12,824.29 SLANTCO CORP 12,739.86 HOFSTRA GLASS MFG 12,424.50 LIPPER CO 12,416.77 GORMAN ELEC 12,309.77 AMERICAN LIGHT CORP 12,239.62 COURIER NETWORK INC 12,185.52 GRAPHIC SYSTEMS INC 11,969.72 DAVID F. PAYNE 11,911.02 CESAR ALVAREZ 11,870.46 SERVICE WORLD 11,849.51 WILLIAMS TV & APPL CO INC 11,843.91 ARTNAC CORP 11,642.70 MATTHEY DESIGNS INC 11,612.81 BRUNNER INC 11,409.56 SOUTH RADIO & TV SVC 11,362.52 WHITE FUTON 10,794.10 ASSOC GROWTH 10,682.61 NEW ARMY NAVY CORP 10,664.58 ATS INC 10,656.68 ALPINE ELECTRONIC SERVICE 10,491.44 ROSE-HAMMER & ASSOCS 10,480.19 COOKIE WORKS INC 10,477.16 CHEMTREX 10,458.53 EASTERN PACKAGING LTD 10,359.37 FINGERS CORP 10,260.41 SMALL BOAT EXCHANGE 10,231.45 HEARTLAND RECRUITING CO 10,227.43 COLOR PRESS CO-ACCT PAYABLE 10,212.15 UTILITY MFG CO INC 10,150.49 C L COMMUNICATIONS 10,149.97 HARRIS FORD MOTORSPORT 10,104.16 STERLING TENTS 10,050.23 PHYTEK GLOBAL INC 10,031.98

LOUISIANA DISC WHSE CO 9,974.81 TELEVISION VIDEO AUDIO SA 9,957.10 SIDNEY CASTELLI MD 9,910.36 LOGAN TANNING INC 9,865.49 MURNELL SEAT CO 9,827.09 CAMERA MUNDI INC 9,605.26 WOODSIDE WOOD FLOORS 9,333.42 AMERICAN INTL SVC 9,221.17 HARLEY TRANSFER CORP 9,218.70 AIR ENERGY INC 9,204.96 VANDYKE FOOD MACHINES 9,203.06 LEE JAY RESTAURANT 9,070.00 TOM'S TV SERVICE 9,055.46 SWEETHEART CORP 8,854.60 G.P. ELECTRONIC SERVICES 8,763.52 J-Z AUTO PARTS INC 8,745.12 LUCY INTERNATIONAL, INC. 8,707.72 INK TECH INC 8,658.79 AFFILIATED MATERIAL INC 8,608.29 GUARDIAN COMP CO 8,573.80 STAR COFFEE 8,481.62 B & B MFG CORP 8,272.92 MEYER-ECCO INC. 8,200.60 KEYSTONE-TURNER CORP 8,190.16 WAKEFIELD ASSOC 8,173.18 ALBERT SANDLER 7,943.95 LEWIS SYLVESTER MD 7,820.34 EXCAVATOR TECH 7,762.95 OFFICE SUPPLY INTERNATIONAL 7,759.76 BRUSH COMPUTREX 7,697.87 STATE OF MARYLAND 7,639.07 ART ACOUSTICS 7,529.68 M PENNY CO - DIST SVCS 7,520.29 WILSON BLOUIN 7,500.77 OMASCOT, INC. 7,443.48 VALUE APPAREL 7,350.79 TAYLOR ATHLETIC HORSESHOES 7,185.67 STAR TORCH 7,136.74 ARV LOGISTICS/FREIGHT PAYMENT 7,052.85 FAYS DRUG COMPANY 7,007.39 CLARK MILLS 6,937.74 PREMIER WHIRLPOOL BATH 6,860.83 B.T. STYLES, INC. 6,854.08 OLDFIELD'S 6,849.33 PAULINE PRODUCTS INC 6,833.76 WEINMACHERS 6,804.32 TOM THOMPSON CYCLES 6,725.25 HAMBLETON & FOOTE 6,656.11 PRINCETON WIRE INC 6,607.53 NATIONAL TAYLOR CORP 6,590.95

US INDIAN HEALTH SERVICE 6,470.27 APEX PAPER CO 6,462.08 WORLD VIDEO CORP 2ND 6,441.89 TOPPERS INC 6,432.03 SOLANO'S TV SERVICE 6,419.29 PARKIN MEDO INC 6,285.20 GUARANTEED-TRNS OPER DPT 6,201.65 HARRIS T.V. AND ELECTRONIC 6,065.17 PEALE OFFICE FURNITURE 6,019.28 CAMDEN WORKS 5,951.46 WEISS DISTRIBUTORS 5,942.98 AVON ELECTRIC 5,823.25 FL WRIGHT CO 5,703.23 HACKER ASSOC 5,650.97 STUDIO BROTHERS 5,617.67 CIRCLE INTL 5,442.67 MICRO ETCH CORP 5,432.70 JOE'S TV 5,423.61 CARPENTER CO 5,420.90 LAMPLIGHTERS 5,420.30 ARMOR PROD 5,407.75 MOOG PAPER BOXES 5,277.27 PIONEER MFG 5,253.74 DENPHAL CUSTOM FURN 5,211.41 USP STERILIZATION INC 5,193.23 DARPIN INTL GROUP 5,150.93 COLUMBIA CLORINE CO., INC. 5,069.89 B B R, INC. DBA KELLY'S 5,027.52 PETERSON HOTEL CORP 4,876.79 REDS CUSTOM SOUND INC 4,861.00 BEACON WIRING CO 4,770.45 M N D CORP 4,759.67 VAN BREEDEN CO 4,758.00 J POMERANTZ 4,757.52 SERT CO 4,719.67 TENATRONICS CORP 4,621.90 EXTRA-FAST CO 4,586.09 FIBER PRODUCTS INC 4,557.76 MICRO TECH CORP 4,556.73 KOLLMORGEN INSTR CO 4,528.83 WALTON STORES INC 4,453.26 ELLEN R WASNER MD 4,432.19 FOAM PRODUCTS 4,380.70 ALBERT B FITZGERALD INC 4,378.61 JOHNSTONE GLASS 4,366.64 MIDCO HARNESS 4,360.85 SCHULTZ & SON INC 4,355.89 B & E RAILROAD 4,263.89 SUPER MARKET CORP 4,256.22 SILIPOS CAMERA INC 4,229.14

PERFECT TIMES 4,212.19 CONSOLIDATED ELECT 4,203.92 Y & R 4,173.59 ESSEX CORP 4,171.83 GLOBAL COMM CORP - STE 207 4,095.56 PETE MARTIN 4,082.72 SCHOONMAKER MICA CO 4,046.13 MOTOR CARGO 4,023.11 BUECHLE & KUEHNE 4,011.46 SCANDIA SCIENTIFIC CO 3,997.68 ROHM AND NPC 3,951.18 COVE HARDWARE 3,949.96 GRANDVIEW CORPORATION 3,891.54 CUSTOM CLASSICS 3,859.39 MC GRAW & GUNTHER 3,836.48 J C LICHT CO-PRAIRIE #2 3,823.54 FIBERWORK INC 3,807.72 CANCER SPECIALIST INC 3,786.46 INTL PLAY THEMES 3,784.50 POLAR AIR CORP 3,741.35 ELTON METAL POWDERS 3,701.53 INNOV MOTORS AMERICA 3,684.96 TACO GROUP 3,670.32 RAM DATA SERVICE CTR 3,600.86 IRON HORSE 3,598.07 CUSTOM ELECTRONICS 3,580.63 ALBERTSON NETWORK 3,540.02 SAVE THE CHILDREN FED. 3,524.62 F DICK CORP 3,523.15 CLOTHING SALES CRP 3,500.44 FONTAINE'S RADIO & TV SER 3,460.48 PURE SYSTEMS 3,423.11 WYETH LABELS 3,399.68 DEBBIE CELESTINO 3,337.62 MCMASTER CARTER SUPPLY 3,296.49 TEMPO APPL. SERVICE INC 3,264.46 R N BALDWIN & ASSOC 3,254.47 ULSTER LUMBER SUPPLY 3,139.10 TRASK CASTERS INC 3,099.47 BRUCE G ATCHESON MD 3,098.67 RUSSELL TOOL & MACH CO INC 3,082.41 RUNNER TRANSPORT 3,067.10 IT TRANS DIST SVC 3,058.65 F.I.R.S.T., INC. 3,011.38 CHECKPOINT FLOWERS INC % STI 2,986.58 MACARTHUR DIST CO 2,937.76 DOUBLETREE 2,890.62 ARS MFG INC 2,847.85 NELAS STORES, INC 2,796.56 ROGER RADIO & TELEVISION 2,780.81

INTERPLANT INC 2,753.67 AUTOMATIC SWITCH CO 2,676.69 BEELINE PRODUCTS INC 2,646.13 COMMUNICATIONS DESIGN CO 2,636.19 LAZARUS ENT 2,600.83 KISS ME CORP 2,599.36 TESS CANDY CO INC 2,574.69 PLAINFIELD SUPPLY 2,571.88 ARGON INC 2,552.42 RALSTON NELSON INC 2,552.34 WORLD CASS INFO 2,549.47 SULLIVAN PLASTICS % CT 2,519.14 V.J.'S TV & APPLIANCE 2,443.98 ABUNDANCE INC 2,434.68 CERTAIN SEED CORP 2,377.96 CONN SCIENTIFIC CORP 2,360.81 STERNBERG RADIATORS INC 2,292.42 SALEM HARDWEAR 2,290.50 US PHS INDIAN HOSPITAL 2,276.09 MASTER RELIANCE 2,275.10 NATIONAL TV & APPLIANCE 2,263.37 THRUWAY CONNECTORS 2,255.32 LAMBERT & HIGGINS 2,253.61 POCONO PETERTON 2,217.74 MILLS DEPARTMENT STORE 2,213.81 ROYALTONE 2,213.09 COLE FILM 2,211.74 ROSEN COMERCIAL IMPORT 2,142.20 USTC VALVE COUPLING 2,097.42 PLASMA CANADA 2,068.88 PROTECTIVE COATING CORP 2,066.92 MECKLENBURG FLORIST 2,043.70 INTERNATIONAL MICROENG 2,038.47 RAYMOND M KELLER 2,027.97 BUSINESS MACHINE PROFESSIONAL 1,989.41 WEBSTER FOOD STORES 1,984.19 DESIGN LABEL MFG INC 1,978.68 NEEDHAM FURNITURE 1,972.14 RUBBER SUPPLY CO 1,930.06 MACARTHUR DIST CO 1,908.80 UNIVERSAL INSTRUMENTS INC 1,905.31 MAIN PAPER & PACKAGING 1,893.62 IVERS PRINTING & BUSINESS FMS 1,827.59 NORTON CO 1,820.74 AIRTEK PRODS 1,816.26 TABER ENGINE CONNECTION 1,774.14 PERFORMANCE MFG 1,766.72 LUIS CALDERON 1,757.86 EMPIRE WEAVING 1,751.75 KIMSCO FASHION DESIGN CO 1,709.10

PAUL K CALLOWS CO 1,694.63 NORTHEAST MEDICAL SUPPLY 1,645.06 SPORT DODGE 1,640.42 HARRY SANDOW CO INC 1,626.43 FRIGIDCO 1,624.54 QUALITY MARKETS 1,607.88 LEHANNS OF AMERICA 1,587.94 OVERLAND TRADE 1,583.79 TAYLOR ALUMINUM 1,578.32 TRADE CHEMICAL CORP 1,527.68 RAND PARK 1,520.28 EMPLOYEE CHARGE SALES "A" 1,503.29 SAVTEC INC 1,498.70 BATES 1,485.27 HAROLD ELLIS CO 1,477.26 BANK BROS 1,474.56 GBI ELECTRONICS 1,451.21 WARWICK SERVICES 1,444.11 VIDEO & SOUND CENTER 1,433.61 RETAIL CLOTHIERS INC 1,381.01 WESTERN ONCOLOGY MED GROUP 1,380.39 PEAREY CORP 1,379.60 DERBY RACE CARS 1,371.85 POLAR FOODS 1,329.94 THE DISTRIBUTORS LTD. 1,313.88 PLASTIC STORAGE SYSTEMS INC 1,274.83 LORD CORP 1,223.43 HERLIN BEVERAGE CO 1,189.95 QUALITY WHSE 1,181.12 SHOE FACTORY OUTLET 1,180.94 TOM BERNARDI INC 1,164.93 SOUND CITY INC 1,132.43 BRIDGE TOOL & MFG 1,120.50 WILD BLUEBERRY CO 1,110.49 HAMPTON WHSE 1,096.44 SALIDA, INC 1,094.12 PEACHTREE & HALL 1,056.13 R & R HLTHCARE RES INC-CPO 1,053.17 SWIFT TRANSPORTATION & LOGISTI 1,045.00 MAITLIN BIOCHEMICAL 1,039.73 HENDERSON PUMP CO 1,016.01 RGB PUBLICITY ACCOUNT 969.13 B & B CLOTHING MFG. CO., INC. 858.19 DIOR INTERNATIONAL 841.51 GLEASON CORP-ATTN:VERSHARNN 820.25 TRIMOTOR INC 796.92 MASON AUTOMATIC MACHINERY 779.92 HANNAFORD SULLIVAN 769.01 CWP INDUSTRIES INC 750.70 EVERHART CO 706.39

ULTIMATE RESEARCH INC 678.71 RIVER BUILDING SUPPLY 668.54 UNION SAT, INC. 654.36 MERRITT FROSST CANADA INC 641.73 HILL VIDEO CENTER 627.69 WIDMAN DRILL CO 625.60 A TO Z 606.34 DELTRON INC 605.19 PHYSICIAN SALES & SVC INC 601.21 ELIZABETH FALLS 404.29 PUERTO RICO HOSP SPLY 389.42 WORD PROC 382.27 SAMUEL PLUMBING & HTG 365.98 DES CHAMPS WHITE 339.08 RALEIGH USA BICYCLE % NTA INC 255.31 SHAWMUT HILLS 254.45 SALTON CREATIONS 221.34 MONSEY PRODUCTS CO 216.80 MARCOT DEVELOPMENT 163.45 MR. ALAN'S STYLES. 150.72 4985776.60

12,969,686.36 12969686.36

Figure 16-8 Pinnacle Manufacturing Sample of Accounts Payable Selectedfor Confirmation--December 31, 2011

High-Volume Items (>$250,000)1. AMERICAN PRESS $ 340,767.94 2. CLEAN-O-RAMA, CO. 317,668.63 3. FIBERCHEM 793,049.89 4. RUFUS AUSTIN ANTIQUES 400,046.08 5. TODD-MACHINERY 531,073.93 6. WELBURN MANUFACTURING 388,836.07 $ 2,771,442.54

Large Balance Items ($50,001 - $250,000)1. A & M SANDLER INC $ 81,348.54 2. AMERICAN BABY % USTC 75,432.73 3. BEACH & HOOVER REFINING 76,408.79 4. BEARING DRIVES CO 73,017.24 5. BURTON MARTIN 78,682.54 6. CABLE SYS % IND TRAF CONS 71,288.95 7. EDDIE VENTURA, INC. 60,255.55 8. FIBEROPTICS 60,102.78 9. FINISH METALS INC 60,769.71

10. FREEMAN FURNITURE - ATTN A/P 130,493.51 11. G P CHAMBERS CO 64,125.44 12. GODWIN DRUG COMPANY 84,331.05 13. HOLY FAMILY HOSPITAL 117,916.83 14. LAS FLORES DESIGNS INC 88,644.92 15. LEAN CORP 67,985.23 16. MACDONALD SVC CORPORATION 147,943.95 17. MCCOYS INC 67,936.32 18. METADYNE CORP 85,432.51 19. MICRON POWER SYSTEMS 136,071.37 20. MOBIL OIL 93,210.48 21. NATIONAL ELEVATOR & MACH CO 76,921.40 22. NORRIS INDUSTRIES 88,314.64 23. R & B PRODUCTS 80,092.46 24. REMINGTON SUPPLY 123,411.24 25. SAFETY ENVELOPE CO 223,950.34 26. SCANDEC USA INC 65,942.94 27. THE DUTTON COMPANY 63,882.02 28. THE HABERDASHERY CO 71,869.16 29. UNIVERSITY OF CALIFORNIA 80,624.95 30. ZZZZ BANK ADJUSTMENTS 64,471.21 $ 2,660,878.80

Items $50,000 and less1. ADVENT SIGN MFG. CO. $ 51,750.00 2. B&K MFG CO INC 42,668.50 3. BELLCO 42,710.74 4. BOSTON SHOECASE CO 52,174.50 5. DYNAMIC METAL PRODUCTS 36,546.05 6. EVERHART CO 47,519.14 7. FULLER TRAVEL 32,470.11 8. GOOD HOUSE HOME VIDEO INC 46,472.67 9. HARRAH'S METALS, INC. 51,279.85

10. J C LICHT CO-GLENDALE HTS 53,228.47 11. LIBERTY LIGHTING 46,802.78 12. LONG BEACH LAWN SERVICE 48,488.96 13. PREMIER WHIRLPOOL BATH 6,550.33 14. QUAKER TRANSANALYSIS 50,363.69 15. TOWER INTERNATIONAL 37,299.57 $ 646,325.34

TOTAL TESTED $ 6,078,646.68

FIGURE 16-9 Replies to Requests for Information

STATEMENT FROM FIBERCHEM

Pinnacle ManufacturingDetroit, MI

Amounts due as of December 31, 2011

Invoice No. Date Amount Balance Due8312 11/22/2011 $ 300,000.00 $ 300,000.00 8469 12/02/2011 $ 178,000.00 $ 478,000.00 8819 12/18/2011 $ 315,049.89 $ 793,049.89 (1)9002 12/30/2011 $ 32,500.00 (2) $ 825,549.89

Auditor's notes:(1) Agrees with accounts payable listing.(2) Goods shipped FOB Fiberchem's plant on December 31, 2011, arrived at Pinnacle Manufacturing on January 4, 2012.

STATEMENT FROM MOBIL OIL



Invoice No. Date Amount Balance DueDX14777 12/23/2011 $ 93,210.48 $ 93,210.48 (1)DX16908 12/29/2011 $ 37,812.00 (2) $ 131,022.48

Auditor's notes:(1) Agrees with accounts payable listing.(2) Goods shipped FOB Pinnacle Manufacturing December 29, 2011; arrived at Pinnacle Manufacturing on January 3, 2012

STATEMENT FROM NORRIS INDUSTRIES



Invoice No. Date Amount Balance Due14896 12/27/2011 $ 88,314.64 $ 88,314.64 (1)15111 12/28/2011 $ 117,296.00 (2) $ 205,610.64

Auditor's notes:(1) Agrees with accounts payable listing.(2) Goods received December 30, 2011, recorded on January 2, 2012.

STATEMENT FROM REMINGTON SUPPLY



Invoice No. Date Amount Balance Due141702 11/11/2011 $ 23,067.00 $ 23,067.00 142619 11/19/2011 $ 12,000.00 $ 35,067.00 142811 12/04/2011 $ 7,100.00 $ 42,167.00 143600 12/21/2011 $ 27,715.24 $ 69,882.24 144927 12/29/2011 (2) $ 53,529.00 $ 123,411.24 (1)

Auditor's notes:(1) Agrees with accounts payable listing.(2) Goods shipped FOB Pinnacle Manufacturing on December 29, 2011, arrived at Pinnacle Manufacturing on January 4, 2012.

STATEMENT FROM ADVENT SIGN MFG. CO.



First progress billing per contract $ 51,750.00 (1)Second progress billing per contract $ 7,500.00 (2) Total due $ 59,250.00

Auditor's notes:(1) Agrees with accounts payable listing.(2) Progress payment due as of December 31, 2011, per contract for construction of new custom electric sign. Sign installation completed on January 15, 2012.

STATEMENT FROM FULLER TRAVEL



Invoice No. Date Amount Balance Due84360110 12/04/2011 $ 9,411.63 (2) $ 9,411.63 84360181 12/12/2011 $ 9,411.63 (2) $ 18,823.26 84360222 12/21/2011 $ 7,100.00 (1) $ 25,923.26 84360291 12/26/2011 $ 13,646.85 (2) $ 39,570.11

Auditor's notes:(1) Paid by Pinnacle Manufacturing on December 28, 2011. Payment in transit at year-end.(2) The total of these items of $32,470.11 agrees with accounts payable listing.

A. Relationships, Ratios and Trends

RelationshipsComparing the current list of Accounts Payable to last year's list of Accounts Payable,could assist in finding any unusual balance changes in particular vendors. Finding anymajor balances changes from one year to the next, could be an indication for the auditor to requestan explanation for the major change.

RatiosAccounts Payable Turnover :Total Purchases/(Beginning A/P+Ending A/P)/2 then 365/ans2009-2010 - 29.21 days 2010-2011 - 35.29 daysThese ratios indicate that Pinnancle has increased the amount of time it is taking to pay their vendors.Investigate the reasoning behind increasing the payments to nearly one week longer.

This ratio would seem more reasonable if the inventory ratio was actually showing that inventorywas being used quicker. Instead, the ratio is actually showing risk of obselescence decreasing from a turnoverof 4.32 times per year in 2009-2010 to 3.78 times per year in 2010-2011.

TrendsWhen looking at the percent of change for years 2009-2010 and 2010-2011, we see thataccounts payable increased from 24.71% to 37.09% respectively. This increase seemed tobe a result of the large increase in inventory, which increased from 1.05% to 26.23%. Lookingat the monthly detail of purchases may give some indiciation of any trend for the increase.

Another area to look at is the charges to other expenses that could end up on accounts payable.Two accounts that could be investigated would be legal services and repairs and maintenance. Verify if either of these expenses are associated with any vendors on the accounts payable listing to test for reasonableness.

major balances changes from one year to the next, could be an indication for the auditor to request

These ratios indicate that Pinnancle has increased the amount of time it is taking to pay their vendors.

was being used quicker. Instead, the ratio is actually showing risk of obselescence decreasing from a turnover

Verify if either of these expenses are associated with any vendors on the accounts payable listing

B. Audit Program for Accounts Payable

1. Recalculate the AP Population file and compare the total to the balance of the accounts payable account on the general ledger.

2. Send 25 Vendor Confirmations off the AP Poplulation file to verify the detail and balance with what the vendor's balance is showing.

3. Match the responses with the balances shown on the AP Population.

4. For the non-responses, verify the invoices shown on the aging detail with the actual invoices to verify correct data.

5. Inquire with management and review the AP Population for any related party transactions.

6. Select the last 25 transactions of the current year and the first 25 transactions of the subsequent year and trace eachto the related documentation.

1. Recalculate the AP Population file and compare the total to the balance of the accounts payable account on the general ledger.

2. Send 25 Vendor Confirmations off the AP Poplulation file to verify the detail and balance with what the vendor's balance is showing.

4. For the non-responses, verify the invoices shown on the aging detail with the actual invoices to verify correct data.

6. Select the last 25 transactions of the current year and the first 25 transactions of the subsequent year and trace each

C. Affect on audit procedures

1. Assessed control risk is high2. Inherent risk is high3. High potential for misstatement

With higher risks in all areas, any sample sizes would be increased to check the potential of a lack of controls or potential misstatements. Vendor confirmations would increase to verifybalances shown on the AP Population are correct. For the cutoff testing, an increase from25 transactions to 50 transactions would be justified.

FIGURE 16-10 Pinnacle Manufacturing Analysis of Trade Accounts Payable--December 31, 2011

Vendor

Accounts in stratum > $250,000)

Fiberchem $ 793,049.89 $ 825,549.89 $ (32,500.00)

$ 1,978,392.65 $ 1,978,392.65

$ 2,771,442.54 $ 2,803,942.54 $ (32,500.00) $ - Accounts in stratum $50,001 - $250,000

Mobil $93,210.00 $131,022.00 ($37,812.00) ($37,812.00)

Norris $88,315.00 $205,611.00 ($117,296.00)

Remington $123,411.00 $123,411.00

Advent $51,750.00 $59,250.00 ($7,500.00)

$2,304,192.80 $ 2,141,584.80

$2,660,878.80 $2,660,878.80 ($162,608.00) ($37,812.00)

Accounts in stratum less than or equal to $50,000

Fuller $32,470.00 $39,570.00 ($7,100.00) ($7,100.00)

$ 613,855.34 $ 606,755.34

$646,325.34 $646,325.34 ($7,100.00) ($7,100.00)

Balance per Books

Amount Confirmed by

Vendor

Difference: Books Over

(Under) Amount

Confirmed

Timing Difference: No Misstatement

Balances confirmed without misstatementsTotal for Key Accounts > $250,000

Balances confirmed without misstatements

Total for Key Accounts $50,001-$250,000

Balances confirmed without misstatementsTotal for Key Accounts <$50,000

Pinnacle Manufacturing Analysis of Trade Accounts Payable--December 31, 2011

Misstatement in Related Accounts

Brief Explanation

$ (32,500.00) $ (32,500.00)

$ (32,500.00) $ (32,500.00) $ -

($117,296.00) $117,296.00

$53,529.00 ($53,529.00)

($7,500.00) ($7,500.00) DR Fixed Asset CR A/P

($71,267.00) ($7,500.00) $63,767.00

$0.00 $0.00 $0.00

Misstatement in Accounts

Payable o/s (u/s)

Other Balance Sheet

Misstatement o/s (u/s)

Income Statement

Misstatement o/s (u/s)

F.O.B. Origin error Dr. Inv. Cr. A/P

Timing difference - shipment was in transitInvoice not recorded on A/P (Purchases and A/P)Pinnacle Recorded FOB Shipment before Received (Purchases and A/P)

Timing difference - payment was in transit

$0

$2,771,443

$2,771,443

$0Estimate of Sampling Error $160,000

Total Estimates $160,000

$63,767

$2,660,879

$5,212,457

$124,915Estimate of Sampling Error $100,000


$0

$646,325

$4,985,777



$32,500

$2,771,443

$2,771,443

E. Estimate of m/s in the income statementMisstatements in sample

Stratum >$250,000

Dollars sampled Stratum >$250,000

Dollars in Population Stratum >$250,000

Income Statement m/s - Point Estimate

Misstatements in sample Stratum $50,000-$250,000

Dollars Sampled Stratum $50,000-$250,000

Dollars in Population Stratum $50,000-$250,000


Misstatements in sample Stratum <$50,000

Dollars Sampled Stratum <$50,000

Dollars in Population Stratum <$50,000


F. Estimate of m/s in accounts payable

Misstatements in sample Stratum > $250,000

Dollars Sampled Stratum > $250,000

Dollars in Population Stratum >$250,000



$71,267

$2,660,879

$5,212,467



$0

$646,325

$4,985,777



Accounts Payable m/s - Point Estimate

Misstatements in sample Stratum $50,001-$250,000

Dollars Sampled Stratum $50,001-$250,000

Dollars in Population Stratum $50,001-$250,000


Misstatements in sample Stratum <$50,000

Dollars Samples Stratum <$50,000

Dollars in Population Stratum <$50,000


G. Conclusion

Overall, the audit did not show any significant errors for Pinnancle. While there were errors found in sampling,they fell below our tolerable misstatement of $250,000 in regards to the income statement. Management should consider establishing procedures for dealing with year end cutoff shipments. This seems to be an area of concern. While the misstatements did not have a material affect on the income statement, the audit procedures may expand the sampling for this area to check for additional misstatements.

Overall, the audit did not show any significant errors for Pinnancle. While there were errors found in sampling,they fell below our tolerable misstatement of $250,000 in regards to the income statement. Management should consider establishing procedures for dealing with year end cutoff shipments. This seems to be an area of concern. While the misstatements did not have a material affect on the income statement, the audit procedures may expand the sampling

16-35 team e

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