a. What is the motivation for analysts to consider reformulating financial statements for warranty expenses?

b. Which type of revenue (Automotive or Financial Services) is related to warranty expense? Explain.

c. Reformulate the income statement for all three years under the assumption that warranty expense is a constant percentage of revenue across all three years. Specifically, compute adjustments to: warranty expense, income tax expense, and net income. Assume the companys tax rate is 22%.

d. Reformulate the balance sheet for all three years. Specifically, compute adjustments to: warranty li abilities, deferred tax assets, and retained earnings. Assume the companys tax rate is 22%.

rora Motor Company reported the following information in its 2018 financial statements. Use these data to answer the requirements. The income statement reports the following additional information. rora Motor Company reported the following information in its 2018 financial statements. Use these data to answer the requirements. The income statement reports the following additional information