Prepare common-sized financial statements for Leslie Fay for the period 1987 1991. For that same period, compute for Leslie Fay the ratios shown in Exhibit 2. Given these data, which financial statement items do you believe should have been of particular interest to BDO Seidman during that firms 1991 audit of Leslie Fay? Explain. The Leslie Fay Companies Consolidated Income Statements 19871991 (in millions) 1991 1990 1989 1988 1987 $582.0 403.1 178.9 132.5 3.8 136.3 42.6 16.4 26.2 (5.0) 31.2 11.5 $ 19.7 $ 1.03 Net Sales Cost of Sales Gross Profit Operating Expenses: Selling, Warehouse, General and Administrative Amortization of Intangibles Total Operating Expenses Operating Income Interest Expense Income Before Non-recurring Charges (Credits) Non-recurring Charges (Credits) Income Before Taxes on Income Income Taxes Net Income Net Income per Share $786.3 $682.7 536.8 466.3 $836.6 585.1 251.5 269.4 249.5 216.4 $858.8 589.4 183.8 156.2 2.6 3.3 189.0 201.9 186.4 159.5 62.5 67.5 63.1 56.9 186.3 2.7 199.0 2.9 19.3 18.2 44.2 18.3 18.7 48.8 43.8 38.7 44.2 14.8 19.7 18.0 16.4 48.8 43.8 38.7 $ 29.4 $ 1.55 $ 29.1 $ 1.53 $ 25.8 $ 22.3 $ 1.35 $ 1.17