ABC COMPANY BALANCE SHEET AS OF DECEMBER 31, 2018 2018 2017 2016 $ $ $ ASSETS Current assets Cash Accounts Receivable InventoABC COMPANY INCOME STATEMENT FOR THE PERIOD ENDED DECEMBER 31, 2018 $ $ $ Sales Cost of goods sold Gross profit 2018 1,572,13ABC RATIO 31-Dec-18 121312018 12/312017 CHANGE % LIQUIDITY RATIOS: Current ratio Current assets Current liabilities $3.79 $2.ABC COMPANY BALANCE SHEET AS OF DECEMBER 31, 2018 ASSETS 2018 % TOTAL ASSETS 2017 % TOTAL ASSETS 2016 % TOTAL ASSETS $ $ $ Cu ABC COMPANY BALANCE SHEET AS OF DECEMBER 31, 2018 2018 2017 CHANGE % CHANGE $ $ $ ASSETS Current assets Cash Accounts Receiva$ Sales Cost of goods sold Gross profit 2018 1,572,134 601,215 970,919 % of Sales 100% $ 38% 62% $ 2017 1,413,581 556,721 856$ $ Sales Cost of goods sold Gross profit 2018 1,572,134 601,215 970,919 2017 1,413,581 $ 556,721 $ 856,860 $ CHANGE 158,553 Fraud Examination (6th Edition) - Albrecht, Albrecht ISBN 9781337619677 Chapter 6, End of Chapter, CASE STUDIES 4 Part 2 - Financial Statement Analysis to Detect Possible Fraud Case Study 4, Chapter 6 Based on your horizontal and vertical analysis, identify at least three possible red flags and indicate if a reasonable explanation exists in 12 sentences for each of the areas of concern you choose. Provide specific details in your paragraph explanation of each ratio, including horizontal and/or vertical analysis changes that support the concerns raised by the selected ratios.

Based on the ratio worksheet analysis, indicate at least three ratio areas where you can identify revenue fraud may have occurred. Provide specific details in your paragraph explanation of each ratio, including horizontal and/or vertical analysis changes that support the concerns raised by the selected ratios. Based on the ratio worksheet analysis, indicate at least three areas where you can identify inventory fraud may have occurred. Provide specific details in your paragraph explanation of each ratio, including horizontal and/or vertical analysis changes that support the concerns raised by the selected ratios.