Assume you are the manager of the flower shop. Choose two areasthat you would investigate further because the numbers appear odd.Maybe the numbers increased significantly. Maybe the numbers didnot increase enough.

First, explain why you believe the numbers youchose may need further investigation.

Second, give a legitimate reason why thenumbers appear as they do.

Example: Assume the salaries went from $150 in 2019 to $300 in2020. This appears odd because salary increases are not usually a100% increase. A cost-of-living salary increase or a 10% raisewould be more logical. However, it is possible the company hiredadditional workers or gave profit-sharing bonuses which couldexplain the significant increase.

Daisy and Lily's Flower Shop Income Statement For years ended 2020 and 2019 (In thousands) Sales Cost of Goods Sold Gross Profit Expenses: Advertising Delivery Salaries Rent Insurance Utilities Total expenses Other Income (Expense): Interest Expense Income Taxes Net Income Units Sold 2020 250 8,000 6,000 75% 2,000 25% 100 50 150 450 150 150 1,050 720 46 100% 184 1% 1% 2% 6% 2% 2% 13% 9% 1% 2% 2019 6,000 3,900 2,100 250 50 1% 40 1% 150 3% 250 4% 125 2% 100 2% 715 12% 450 180 100% 65% 35% 755 8% 3% 13%