International Dairy Queen’s annual income statement for the year ended November 30, 1994, and its four quarterly income statements are presented below.

Annual ending 11/30/94 11/30/94 2/24/95 5/26/95 8/25/95 Net sales $340,833 $76,070 $67,530 $106,150 $115,361 Cost of goods sold 249,985 55,140 47,556 79,220 83,010 Gross profit 90,848 20,930 19,974 26,930 32,351 Selling, general, and administrative 40,495 10,331 12,352 11,136 13,418 Income before depreciation 50,353 10,599 7,622 15,794 18,933 Depreciation 00000 Non-operating income 1,578 (56) 498 484 484 Income before tax 51,931 10,543 8,120 16,278 19,417 Provisions for income tax 20,510 4,160 3,210 6,430 7,670 Net income $ 31,421 $ 6,383 $ 4,910 $ 9,848 $ 11,747 Required

a. Review the annual income statement for the fiscal year ended 11/30/94 and the quarterly income statements for the four quarters. Identify any unusual items.

b. Evaluate any seasonal trends in these quarterly statements.

c. Discuss why Dairy Queen would choose November 30 as its fiscal year-end. LOP585