Assume that Alpha and Omega compete in the same four-digit SIC code industry and offer comparable products and services. The following table contains their reported financial performance and condition for the last two years:

1. Using the financial statement data provided, complete the following assignments:

a. Describe any symptoms of fraud b. Draw a conclusion about fraud predication and recommend next steps.

2. Assume that industry ratios were derived from a reputable source. Compute the year 1 and year 2 ratios for Alpha and Omega:

3. Using your calculated ratios from assignment 2 in concert with the metrics calculated in assignment 1, complete the following assignments:

a. Describe any symptoms of fraud b. Combine the findings in the ratio analysis with the metrics calculated in assignment 1 and draw a conclusion about fraud predication and recommend next steps.

4. Assume that nonfinancial metrics were derived from reliable public and internal sources. Complete the analysis of NFMs for Alpha and Omega:

5. Using your calculated metrics from assignments 1 an 2 in concert with the metrics calculated in assignment 4, complete the following assignments:

a. Describe any symptoms of fraud b. Combine the findings in the NFMs with the ratio analysis computed in assignment 2 and percentages calculated in assignment 1 and draw a conclusion about fraud predication and recommend next steps.

\begin{tabular}{|l|r|r|r|r|r|r|r|} \hline & \multicolumn{3}{|c|}{ Alpha Company } & & Omega Company \\ \hline Balance Sheet & Year 1 & Year 2 & Analysis & Year 1 & Year 2 & Analysis \\ \hline Assets-Cash & 250 & 480 & 92% & 250 & 480 & 92% \\ \hline Assets-Accounts Receivable & 250 & 330 & 32% & 250 & 530 & 112% \\ \hline Assets-Long-Term & 500 & 900 & 80% & 500 & 900 & 80% \\ \hline Assets & 1,000 & 1,710 & 71% & 1,000 & 1,910 & 91% \\ \hline Liabilities-Current & 400 & 750 & 88% & 400 & 750 & 88% \\ \hline Liabilities-Long-Term & 200 & 375 & 88% & 200 & 375 & 88% \\ \hline Liabilities & 600 & 1,125 & 88% & 600 & 1,125 & 88% \\ \hline Stockholders' Equity & 400 & 585 & 46% & 400 & 785 & 96% \\ \hline Liabilities and Stockholders' Equity & 1,000 & 1,710 & 71% & 1,000 & 1,910 & 91% \\ \hline Income Statement & & & & & & \\ \hline Revenues & 1,200 & 2,200 & 83% & 1,200 & 2,400 & 100% \\ \hline Costs of Goods Sold & 500 & 925 & 85% & 500 & 925 & 85% \\ \hline Gross Profit & 700 & 1,275 & 82% & 700 & 1,475 & 111% \\ \hline Operating Expenses & 600 & 1,090 & 82% & 600 & 1,090 & 82% \\ \hline Operating Income & 100 & 185 & 85% & 100 & 385 & 285% \\ \hline Statement of Cash Flows & & & & & & \\ \hline Operating Income & 100 & 185 & 85% & 100 & 385 & 285% \\ \hline Depreciation * Operating Cash & 25 & 45 & 80% & 25 & -155 & 720% \\ \hline Operating Cash Flows & 125 & 230 & 84% & 125 & 230 & 84% \\ \hline \end{tabular} \begin{tabular}{|l|c|c|c|} \cline { 2 - 4 } \multicolumn{1}{c|}{} & \multicolumn{3}{c|}{ Alpha Company } \\ \hline Analysis of NonFinancial|Metrics & Year 1 & Year 2 & Analysis \\ \hline Retail Square footage & 57,000 & 105,000 & 84% \\ \hline \# Employees & 1,140 & 2,075 & 82% \\ \hline \# store locations & 95 & 170 & 79% \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{ Omega Company } \\ \hline Year 1 & Year 2 & Analysis \\ \hline 57,000 & 105,000 & 84% \\ \hline 1,140 & 2,075 & 82% \\ \hline 95 & 170 & 79% \\ \hline \end{tabular}