Can someone help with the answers? Especially Question 2, please.

ClearOne Communications, Inc., is a provider of end-to-end video and audio conferencing services, including the manufacture and sale of video and audio conferencing products. From its inception as a manufacturer of this equipment through 2001, ClearOne sold its products through a nationwide network of manufacturer's representatives. Sometime in early 2001, ClearOne decided to alter its business model and instead of utilizing manufacturer's represen- tatives, began selling its products through a nationwide network of distributors complemented by a direct sales force. Through early 2001, ClearOne experienced robust growth and increased product sales every quarter. From the selected financial data extracted from ClearOne's Form 10-Ks that follow, this growth appeared to continue through fiscal 2002. However, a complaint filed by the SEC against ClearOne alleges that things may not be as rosy as they seem. ClearOne Communications Selected Financial Data Years Ended June 30, 2002 2001 2000 Product sales Service sales Cost of goods sold-products Cost of goods soldservices Operating expenses Pre-tax operating income Income from continuing operations Net accounts receivable at June 30 Cost of goods sold %-products $37,215,161 17,327,525 15,057,167 7,942,952 20,809,281 10,733,286 7,410,752 $20,316,730 40.5% $28,189,612 11,688,793 10,633,956 5,869,106 14,904,460 8,470,883 5,525,185 $ 7,212,970 37.7% $22,226,504 5,891,909 8,033,867 2,974,456 10,568,861 6,541,229 4,301,742 $ 4,153,677 36.1% Required: 1. Retrieve the SEC's complaint against ClearOne Communications, Inc. (www.sec.gov/ litigation/litreleases/1r17934.htm). Describe management's scheme for inflating revenue. 2. Obtain the Form 10-K ClearOne filed with the SEC on August 18, 2005. (Go to www. sec.gov and select "Filings" and then Company Filings Search. Search for ClearOne and then select ClearOne, Inc. Enter 10-K for filing type and click on "Search." Then click on the appropriate document.) Analyze the income statement effects of the restate- ment that appears on page F-19 of that filing. Describe the overall effects of the restate- ment on ClearOne's income statements for 2001 and 2002. ClearOne Communications, Inc., is a provider of end-to-end video and audio conferencing services, including the manufacture and sale of video and audio conferencing products. From its inception as a manufacturer of this equipment through 2001, ClearOne sold its products through a nationwide network of manufacturer's representatives. Sometime in early 2001, ClearOne decided to alter its business model and instead of utilizing manufacturer's represen- tatives, began selling its products through a nationwide network of distributors complemented by a direct sales force. Through early 2001, ClearOne experienced robust growth and increased product sales every quarter. From the selected financial data extracted from ClearOne's Form 10-Ks that follow, this growth appeared to continue through fiscal 2002. However, a complaint filed by the SEC against ClearOne alleges that things may not be as rosy as they seem. ClearOne Communications Selected Financial Data Years Ended June 30, 2002 2001 2000 Product sales Service sales Cost of goods sold-products Cost of goods soldservices Operating expenses Pre-tax operating income Income from continuing operations Net accounts receivable at June 30 Cost of goods sold %-products $37,215,161 17,327,525 15,057,167 7,942,952 20,809,281 10,733,286 7,410,752 $20,316,730 40.5% $28,189,612 11,688,793 10,633,956 5,869,106 14,904,460 8,470,883 5,525,185 $ 7,212,970 37.7% $22,226,504 5,891,909 8,033,867 2,974,456 10,568,861 6,541,229 4,301,742 $ 4,153,677 36.1% Required: 1. Retrieve the SEC's complaint against ClearOne Communications, Inc. (www.sec.gov/ litigation/litreleases/1r17934.htm). Describe management's scheme for inflating revenue. 2. Obtain the Form 10-K ClearOne filed with the SEC on August 18, 2005. (Go to www. sec.gov and select "Filings" and then Company Filings Search. Search for ClearOne and then select ClearOne, Inc. Enter 10-K for filing type and click on "Search." Then click on the appropriate document.) Analyze the income statement effects of the restate- ment that appears on page F-19 of that filing. Describe the overall effects of the restate- ment on ClearOne's income statements for 2001 and 2002