Financial Statements for Regina
Autor: wanjingz • October 2, 2012 • Essay • 516 Words (3 Pages) • 2,367 Views
1. Prepare common-sized financial statements for Regina for the period 1986 to 1988. Also, compute key liquidity, solvency, activity, and profitability ratios for the years 1987 and 1988. Given these data. Identify what you believe were the high-risk financial statement line items for the 1988 Regina audit.
Regina Company, Inc
Income Statement 1986-1988 (000s omitted)
30-Jun
1988 1987 1986
Net Sales $ 181,123 $ 128,234 $ 76,144
Operating Costs and Expenses:
Cost of Goods Sold 94,934 70,756 46,213
Selling, Distribution, and Admin 21,870 14,621 10,366
Advertising 39,992 26,449 8,557
Research and Development 2,423 1,530 1,182
Total Operating Cost and Expenses 159,219 113,356 66,318
Operating Income 21,904 14,878 9,826
Interest Expense 3,189 1,584 1,930
Income Before Income Taxes 18,715 13,294 7,896
Income Tax Expense 7,761 6,189 3,807
Net Income 10,954 7,105 4,089
Earnings per Share 1.21 0.78 0.46
Current Ration ( current asset/current liab) 4.086 2.051 1.631
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