un ucun Puuil ucigallinell! Case 7 The following two comparative balance sheets and statements of income are for XYZ Company for the years 2015-2017: CASE 7 CONSOLIDATED BALANCE SHEETS XYZ COMPANY 2017 2016 2015 Assets: Current assets Cash and cash equivalents Receivables 602 3,329 in whole or in a Due to electronic ngh, somethind party content may be suppressed in the eleck and r estes to remove additional content is th Chapter e p 491 > @ gol h a c 1)) ENG 11:36 AM 12/2014 Inventories 900 1,524 851 $9,519 22,547 10,982 1,112 302 $6,380 15,239 456 $5,002 12,045 7,698 3,511 (235) 8,475 5,008 6,233 (396) (305) S34,797 $28,021 Deferred income taxes Total current assets Land Buildings Machinery Accumulated depreciation Total assets Liabilities and Stock- holders' Equity: Current liabilities Accounts payable Taxes payable Total current liabilities Long-term debt Deferred income taxes Stockholders' Equity Common stock $5,603 $4,112 $4,758 786 235 $6,389 $4,655 $4.993 16.987 16,115 1 9,546 8-15 562 354 22.220 12.764 2.907 22,220 12,764 Common stock Retained earnings Total liabilities and stockholders' equity 701 2,907 221 $48,885 $34,797 $28,021 CASE 7 DONSOLIDATED STATEMENTS OF INCOME- XYZ COMPANY 2015 $18,739 2017 $26,534 18,201 $8,333 Revenues Cost of goods sold Gross margin Operating expenses Operating income before taxes 15,406 2016 $22,473 18,161 $4,312 3,512 $3,333 2,965 5,428 $2,905 $800 $368 Income taxes 1.162 320 147 Net income $1.743 $180 $221 Calculate all ratios needed to determine if XYZ is possibly underreporting accounts payable. If you detect possible fraud, explain why you think it might exist