4-56 (analytical review and planning the audit, lo 7) the following table contains calculations of several key ratios for indianola pharmaceutical company, a maker of proprietary and prescription drugs. the company is publicly held and is considered a small-to medium-size pharmaceutical company. approximately 80% of its sales have been in prescription drugs; the remaining 20% are in medical supplies normally found in a drugstore. the primary purpose of the auditor’s calculations is to identify potential risk areas for the upcoming audit. the auditor recognizes that some of the data may signal the need to gather other industry- or company-specific data.
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