Mary and John Cooke Investigation $$ Part Four

SCENARIO

The investigation of Mary and John Cooke continues. Even though, as the investigator assigned to the case, you came up with a specific item of proof indicating the Cookes did commit financial fraud, it's not enough. You now must resort to using an indirect method of proof to show the extent of fraud being employed by your criminals.

Even though all of the business records provided to you look "legit" and you know that regular deposits are being made into the Cookes' business account, you decide to do a bank deposit analysis to see if you can compute their funds from unknown sources for the year $2013.$

DIRECTIONS

Using the following facts and the formula and procedures provided in the textbook and this workbook, perform the bank deposit analysis. You may use the single step or the multi$-$step format.

$1.$ The Cookes have a checking account that they opened on June $1,2012.$ Their balance as of December $31,2012$ was

$$4,000.$ During $2013,$ the Cookes made total currency deposits of $$70,000$ and disbursements of $$65,000.$ Their balance as of December $31,2013$ was $$9,000.$

$2.$ A search of your county real estate records shows that the Cookes purchased their present home in $2012$ for

$$150,000$ and that they obtained a $$50,000$ mortgage. Real estate taxes on the property amounted to $$1,200$ for the year $2013.$ Contact with the lending institution shows that the Cookes made monthly payments of $$1,000$ to the lending institution during $2013.$

$3.$ City records indicate that the Cookes purchased a lot for $$50,000$ in $2013.$ They made a $$25,000$ cash down payment and received a loan of $$25,000$ for the remaining amount. Monthly payments beginning January $2013$ are $$350.$

$4.$ Information obtained from a local dealership shows that the Cookes purchased a recreational vehicle on June $4,2013$ for $$36,000$ in currency.

$5.$ Records from a local travel agency disclosed that the Cookes took a vacation to Europe during $2013.$ It cost

$$15,000.$

$6.$ Your review of the books and records from the restaurant shows a net profit of $$48,000$ for $2013.$

$7.$ From an interview with the Cookes, they said their cash on hand on January l$,2013$ was $$1,000.$ Cash on hand December $31,2013$ was $$0.$

$8.$ The Cookes received a cash gift of $$10,000$ from Mr$.$ Cookes' mother for Christmas in $2013.$