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Answer one of the following questions: 1- What does it mean when a company has a high net income but does not have enough cash
Answer one of the following questions: 1- What does it mean when a company has a high net income but does not have enough cash to pay its bills? Explain your answer. 2. The followings are information about the company XYZ. XYZ Company Income Statement of Year Ended 31 December 2020 Sales Note 1 Em 100 2 39 70 Less Cost of Good Sales: Gross Profit Selling and administrated Expan ses Loss for the year 3 89 -10 Additional Information: This is the original income statement for the company, however, the company conducted creative accounting and fraud to four items in the statement. This resulted in making a profit for the year instead of losses Required: Identify two items manipulated by the company that can be considered not a fraud, and identify two items that can be considered fraud. Explain their effect on the relevant items in the income statement
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