Question
Case Study 1 The balance sheet and income statement for ABC Company for the years 2015 and 2016 are as follows: 20152016 Cash$460$300 Accounts Receivable620480
Case Study 1
The balance sheet and income statement for ABC Company for the years 2015 and 2016 are as follows:
20152016
Cash$460$300
Accounts Receivable620480
Inventory1,000730
Total Assets$2,080$1,510
Accounts Payable$580$310
Notes Payable500100
Common Stock400400
Retained Earnings600700
Total liabilities and stockholders' equity$2,080$1,510
Income Statement
Net sales$550$840
Cost of goods sold120160
Gross Margin$430$680
Expenses:
Salaries$100$150
Warehousing Costs80120
Advertising6090
Taxes4575
Total Expenses$285$435
Net income$145$245
Perform vertical and/or horizontal analysis of the statements and identify two things that appear to be unusual and could be possible symptoms of fraud.
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