Interim Reporting
International Dairy Queen’s annual income statement for the year ended November 30, 1994, and its four quarterly income statements are presented below.
|
|
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 |
0 |
0 |
0 |
0 |
0 |
|
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.
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