ABC Company

BALANCE SHEET 2015 2016

Cash $910 $360

Accounts receivable 570 675

Inventory 1,200 830

Total Assets $2,680 $1,865

Accounts payable $545 $425

Notes payable 720 280 Common stock 725 460

Retained earnings 690 700

Total liabilities and stockholders' equity $2,680 $1,865

INCOME STATEMENT

Net Sales $1,050 $1,360

Cost of goods sold 150 240

Gross margin $900 $1,120

Expenses:

Salaries $120 $150

Warehousing costs 80 100

Advertising 480 650 Taxes 45 75

Total expenses $725 $975

Net Income $175 $145

Question: Using Excel, perform vertical and horizontal analysis of the statements and identify two things that appear to be unusual and could be possible symptoms of fraud.