Barry Greenstem, a partner at Homegrown Gardens, LLP has hired you, a fraud examiner, to do a preliminary investigation of his concerns that Betty Stevenson is accepting kickbacks. The red flags he identified are: 1) Homegrown pays higher prices to the wholesaler Monromio Nursery than other retailers do and 2) Betty appears to be living beyond her means. Barry wants you to do a preliminary investigation and to write a memo to him and the other partners. You determine that you need to do a net worth analysis as a first step in your preliminary investigation (the data you need is on page 265). Your memo should provide the partners with a summary of the situation, your initial analysis/findings, the possible options the partners have if they want you to continue your investigation, and what next steps you recommend. Remember to follow the Memo guidelines.

Data from page 265 to complete net worth analysis.

CASE STUDY 4 YLAR BEFORE LAST LAST YLAR THIS YEAR Assets: $70,000 $70,000 $200,000 Personal residence Automobiles 15,000 45,000 30,000 Houseboat 45,000 30,000 12,000 12,000 ATVs Liabilities: Mortgage balance Auto loan 35,000 30,500 100,000 2,500 Loan on 15,000 11,000 houseboat Income: 25,000 25,500 26,000 35,000 36,000 37,000 4,500 4,500 Betty's salary Mike's salary Expenses: Mortgage payments Auto payments Houseboat 13,000 1,800 1,800 2,400 2,400 payments Other living 15,000 17,000 15,000 expenses