1. One factor that may have played a prominent role in Leslie Fays missing the change in the womens fashion industry was:
   1. The companys president refusal to integrate computers into key internal functions thus falling behind competitors in recognizing shifts and changes in customers preferences.
   2. Company management was dominated by males.
   3. Headquartered in New York but its accounting offices and were in Wilkes-Barre, Pa.
   4. The age of the companys president John Pomerantz.

2. Some commonalities between the Health Management fraud and the Leslie Fay fraud is:
   1. They both overstated liabilities.
   2. They both understated marketable securities.
   3. Both companies engaged BDO Seidman as their auditor.
   4. Both companies had operations in New York and Pennsylvania.
   5. Both involved manipulating inventory and used in-transit: inventory as part of the rus
   6. Answers c; d; and e.

3. An example of the power of ratio analysis that could have possibly uncovered the Leslie Fay fiasco sooner would be:
   1. Using multiple regressions of sales data plotted against an extrapolation of back orders.
   2. Using econometric data to determine if debt financing would be better than equity financing.
   3. Comparing Leslie Fays remarkably stable gross profit percentage during the early 1990s against that of competitors and the industry average.
   4. The fact that the ratios were used by the perpetrator to arrive at the fictitious numbers in the made up financial statements.

4. Barry Minkow profited from ZZZZ Best Company, Inc. by:
   1. Selling restoration services.
   2. The appreciation of the companys stock price and diverting the proceeds of bank loans to his personal use.
   3. Being the majority stockholder and declaring large dividends.
   4. Capitalizing on becoming a celebrity as the boy wonder founder of the business and collecting large fees for personal appearances.

IT IS QUITE OBVIOUS THAT THE QUESTION AND POSSIBLE ANSWERS ARE ALL THERE...