The following two comparative balance sheets and statements of income are for XYZ Company for the years 20x1€“20x3:

Income statement

Calculate all ratios needed to determine if XYZ is possibly underreporting accounts payable. If you detect possible fraud, explain why you think it mightexist.

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CONSOLIDATED BALANCE SHEETS XYZ COMPANY 20x1 20X2 20X3 Assets: Current assets Cash and cash equivalents Receivables Inventories Deferred income taxes Total current assets S 1542 $ 851 s 317 4,115 1,112 302 9519S6,380 15,239 8,475 5,008 (305) 5,602 1524 851 3329 900 456 5,002 12,045 7,698 3,511 (235) 22,547 10982 6233 (396) Machinery depreciation Total assets $48,885 $34,797$28,021 Liabilities and Stock holders' Equity: Current liabilities Accounts payable Taxes payable Total current 5,603 786 S 6,389 4,112 543 S 4,655 S4,758 235 S 4,993 liabilities Long term debt Deferred income taxes Stockholders' Equity: Common stock Retained eamings Total liabilities and 16,987 16,115 19,546 845 562 354 22,220 12,764 2,907 221 2,444 701 stockholdersequityS48.885$34797$28.021 CONSOLIDATED STATEMENTS OF INCOME XYZ COMPANY 20X3 20X2 20X1 $18,739 15406 526,534 22,473 Revenues Cost of goods sol18.201 18,161 Gross margin Operating s8,333 4312 3333 5,428 3512 2965 expenses Operating income s 2,905 s 800 368 before taxes Income taxes 1,162 320 147 Net in come $ 1,743 480 $ 221