1. Perform vertical and/or horizontal analysis of the statements and identify two things that appear to be unusual and could be possible symptoms of fraud.

BALANCE SHEET Cash Accounts receivable Inventory Total assets Accounts payable Notes payable Common stock. Retained earnings Total liabilities and stockholders' equity Income Statement Net sales Cost of goods sold Gross margin Salaries Warehousing costs Advertising Taxes Total expenses Net income 2015 S 460 1,000 $2,080 580 500 400 $2,080 550 120 430 100 45 285 s 145 2016 300 480 730 $1,510 310 100 400 $1,510 840 160 S 680 150 120 75 435 245